Molecular simulations for simple fluids in narrow slit-shaped carbon pores exhibit crystal-hexatic and hexatic-liquid transitions that are consistent with Kosterlitz-Thouless-Halperin-Nelson-Young theory. The temperature range over which the hexatic phase is stable is dramatically widened under confinement. Remarkably, the transitions, which are continuous for a single adsorbed layer, become weakly first order when the pore can accommodate two molecular layers. Nonlinear dielectric effect measurements for CCl4 and aniline in activated carbon fibers (pore width 1.4 nm) show divergence at these transitions, confirming the hexatic phase.