Sao Paulo's benchmark Ibovespa index fell 0.6 percent to close at 35,789, while Brazil's troubled currency strengthened slightly to trade around 2.3 reals to the U.S. dollar, up from 2.4 on Thursday.

Mexico's benchmark IPC index slipped 0.8 percent to 19,562, while the peso gained about 1 percent to trade at 13.1 to the U.S. dollar. The central bank turned down bidders at a 10-billion peso interest-rate swap auction, suggesting the country's tight debt markets may be stabilizing.

Argentina's Merval index meanwhile rose 0.7 percent to 1,023, while Chile's IPSA gained 0.9 percent to 2,552 and Colombia's IGBC index rose 3.2 percent to close at 7,180.

Latin American equities rebounded Thursday after steep losses earlier in the week. The region's biggest markets and currencies have been pummeled by the world financial crisis, with benchmark indices in Mexico and Brazil losing more than 40 percent of their values since June as crisis-wary foreign investors shed local assets to cover losses at home.

World leaders from the so-called Group of 20 nations, which includes Brazil, Mexico and Argentina, will meet this weekend in Washington, D.C., to discuss ways to repair the fractured global financial system.