EMERGING MARKETS-Brazilian markets gain on fiscal, ECB hopes

miércoles 21 de enero de 2015 11:29 GYT

SAO PAULO, Jan 21 (Reuters) - Brazil's stocks and currency
gained on Wednesday on optimism about recent government efforts
to correct fiscal imbalanceswhile expectations of additional
stimulus by the European Central Bank boosted Latin American
markets in general.
    A more than 2 percent rise in oil prices  also
supported investor appetite for emerging market assets, driving
the Colombian peso 0.9 percent higher. Oil is Colombia's
main export.
    Latin American markets added to gains after the Wall Street
Journal reported that the ECB's executive board proposed a
quantitative easing program worth 50 billion euros in bond
purchases per month for at least one year. 
    The additional liquidity may increase investors' appetite
for higher-yielding assets in emerging markets.
    The Brazilian real strengthened 1 percent, piercing
the 2.6 reais per dollar mark, with investor sentiment also
supported by measures announced by the government early in the
week to shore up Brazil's fiscal accounts.
    "The market is having a good week, but I'm not sure the real
will be able to hold below 2.6," said Jaime Ferreira, head of
currency trading at Sao Paulo brokerage Intercam.
    Brazil's benchmark Bovespa index rose 2.3 percent,
boosted by shares of financial institutions such as Itau
Unibanco Holding SA and Banco Bradesco SA,
which benefited from an expected rise in the country's base
interest rate later on Wednesday. 
    Shares of state-owned oil company Petroleo Brasileiro SA, or
Petrobras, climbed 3.9 percent along with oil prices.

    Key Latin American stock indexes and currencies at 1515 GMT:
 Stock indexes                   daily %    YTD %
                                  change   change
 MSCI Emerging           974.73     1.82      0.1
 MSCI LatAm             2695.57     2.15    -3.26
 Brazil Bovespa        48957.81     2.26    -2.10
 Mexico IPC            41905.76     0.37    -2.87
 Chile IPSA             3770.48     0.58    -2.09
 Chile IGPA            18537.94     0.47    -1.76
 Argentina MerVal       8670.34     1.01     1.06
 Colombia IGBC         10516.21     0.53    -9.61
 Peru IGRA             13582.89     0.01    -8.19
 Venezuela IBC          3948.56    -0.33     2.33
 Currencies                      daily %    YTD %
                                  change   change
 Brazil real             2.5894     0.91     2.63
 Mexico peso             14.612     0.33     0.90
 Chile peso               627.5     0.20    -3.36
 Colombia peso          2354.99     0.88     1.40
 Peru sol                 3.012    -0.07    -1.10
 Argentina peso          8.6075     0.06    -0.67
 Argentina peso            13.6     0.37     2.94
 (Reporting by Bruno Federoski and Walter Brandimarte; Editing
by James Dalgleish)