EMERGING MARKETS-Latam markets up on oil, outlook on Fed rates
SAO PAULO, Jan 16 (Reuters) - Latin American currencies and stocks mostly advanced on Friday as investors took comfort in more stable oil prices and rising expectations that U.S. interest rates could stay at current low levels for longer. The MSCI Latin American stock index rose its most in over a week. Oil prices rebounded after the International Energy Agency said in a report that it sees signs a price recovery could occur in the second half of the year. Plummeting oil prices driven by a global supply glut have spooked investors in recent weeks, sapping demand for riskier emerging market assets. Colombia, which gets most of its export revenue from petroleum, saw its peso strengthen the most in nearly a month on Friday. Mexico's currency clawed back some of the losses from Thursday's session. Mexico is also an oil exporter. Traders said investors in Latin American assets were further cheered by data showing U.S. consumer prices recorded their biggest decline in six years in December, which could make the Federal Reserve more cautious about raising interest rates. An interest rate hike in the world's largest economy would lead funds out of riskier markets and weaken the region's currencies and shares. The Brazilian real nearly erased the previous session's losses, while the country's benchmark Bovespa stock index gained its most in over a week. Gains in the Bovespa were led by iron-ore mining firm Vale SA and food producer JBS SA. Shares of card payment processor Cielo SA rose nearly 5 percent after the company said on Friday that its partnership with state-run lender Banco do Brasil SA had been approved by anti-trust regulators. Key Latin American stock indexes and currencies at 1707 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 957.98 -0.21 0.38 MSCI LatAm 2659.15 1.02 -3.5 Brazil Bovespa 48943.83 1.91 -2.13 Mexico IPC 41076 0.19 -4.80 Chile IPSA 3746.27 0.45 -2.72 Chile IGPA 18445.52 0.37 -2.25 Argentina MerVal 8639.409 1.96 0.70 Colombia IGBC 10501.76 -0.18 -9.74 Peru IGRA 13548.6 0.08 -8.42 Venezuela IBC 3926.38 -0.07 1.75 Currencies daily % YTD % change change Latest Brazil real 2.6190 0.86 1.47 Mexico peso 14.6157 0.34 0.88 Chile peso 627.9 -0.38 -3.42 Colombia peso 2369.69 1.70 0.77 Peru sol 3.017 -0.53 -1.26 Argentina peso 8.6000 -0.06 -0.58 (interbank) Argentina peso 13.52 0.74 3.55 (parallel) (Reporting by Bruno Federowski; Writing by Asher Levine; Editing by Leslie Adler)
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