EMERGING MARKETS-Brazil's real hits 2-week low on China, Europe

* Traders nervous ahead of G20 meeting in South Korea

* Brazil's real weakens 0.7 pct, Chile's peso down 0.9 pct

* Mexican peso gains 0.5 pct after strong U.S. jobs data (Adds details on Mexican and Peruvian bonds, updates prices)

By Samantha Pearson and Caroline Stauffer

SAO PAULO/MEXICO CITY, Nov 10 (Reuters) - The Brazilian real and the Chilean peso fell sharply on Wednesday as investors grew concerned about euro-zone debt and slowing Chinese demand for Latin American exports.

China, Brazil's top trading partner, ordered its banks to put more money in reserve in an effort to put the brakes on its economy, which China worries may be overheating. For more see [ID:nSGE6A9091].

Weak Chinese import data added to fears that the Asian giant is not buying as many of Latin America's exports, such as soybeans and iron ore, as it has in previous months.

Fresh concerns about euro zone debt also came back to haunt the market, prompting investors to ditch higher-risk assets. [ID:nLDE6A924J]

The Brazilian real dropped 0.71 percent to 1.709 reais per U.S. dollar on the local spot market, closing at its weakest level in about two weeks.

Investors were also cautious ahead of this week's Group of 20 rich and developing nations summit in South Korea, which is to tackle growing tensions over currency imbalances.

"We're in a very difficult situation. If there is no coordination this time, there is a risk that everyone will go their own way, taking their own measures," said Raphael Martello, an economist at Tendencias consultancy in Sao Paulo.

That could mean more intervention measures in Brazil, which has been struggling to contain a rise in the real.

Further tax increases on foreign purchases of local bonds or a reinstatement of income tax for foreigners on those bonds are the most likely options, said Martello.

MEXICAN PESO OUTPERFORMS

The Mexican currency gained 0.52 percent to 12.2365 per dollar after a U.S. government report showed jobless claims fell more than expected in the latest week.

Mexico is less reliant on the commodity trade with China, exporting mainly to the United States.

"The peso is reacting favorably to the jobs data," said Antonio Magana, a currency trader at Interacciones brokerage in Mexico City. "I think investors will move to sell dollars now that the peso is looking to break the 12.2000 level."

The peso pared some gains after a sale of U.S. 30-year Treasury bonds was met with the weakest demand in a year. [ID:nN10194812]

That sale also pushed down the price of Mexican debt, causing a 10 basis-point spike in the yield on Mexico's benchmark 10-year bond .

Meanwhile, Peru took advantage of growing demand for emerging market debt, selling $2.5 billion in two bonds maturing in 10 and 40 years. [ID:nN10204173]

The Chilean peso weakened 0.85 percent to 481.1 per dollar as the price of copper, the country's main export, fell sharply.

Two central bank polls from the Andean country on Wednesday showed the market expects Chile's peso to appreciate to 475 per dollar by next week but settle at 480 in January. [ID:nN10158242] (Editing by Dan Grebler)