UPDATE 1-South African rand firms after recovering from 3-year low

(Updates prices to reflect afternoon trade) JOHANNESBURG, March 9 (Reuters) - The South African rand strengthened on Thursday, recovering from an almost three-year low hit the day before when S&P Global downgraded South Africa's outlook to "stable" from "positive". At 1545 GMT, the rand traded at 18.5700 to the dollar, 0.34% stronger than its previous close. On Wednesday it hit 18.7200, its weakest in almost three years. The dollar was down about 0.4% against a basket of major currencies, after reaching a 2023 high on Wednesday following hawkish comments by U.S. Federal Reserve Chair Jerome Powell. Global investors will now be looking at U.S. jobs data due on Friday for confirmation that a strong labour market supports more interest rate increases. "After January's stellar jobs numbers, tomorrow's release could either add to the hawkish rhetoric or not. Anything in line or above forecasts could add to the rand's woes possibly surpassing yesterday's high (for the dollar) of 18.72," said IG analyst Warren Venketas.

Shares on the Johannesburg Stock Exchange were little changed, with the Top-40 index down 0.03% and the broader all-share index closing 0.1% lower. Analysts said the markets had already priced in S&P's downgrade. The downgrade followed disappointing gross domestic product data released earlier this week, which showed South Africa's economy contracted more than expected in the last quarter of 2022 and could be on track for a recession if it shrinks again this quarter. The government's benchmark 2030 bond was weaker, with the yield up 3 basis points to 10.195%. (Reporting by Nellie Peyton and Tannur Anders Editing by Bhargav Acharya and Mark Potter)