EMERGING MARKETS-Brazil rises on Petrobras price, cabinet shake-up
SAO PAULO, Sept 30 (Reuters) - Brazil's financial markets rose on Wednesday, with the Bovespa stock index boosted by a fuel price increase at state-run oil firm Petrobras and the currency up on a potential shake-up in President Dilma Rousseff's cabinet. Other Latin American financial markets rose as well as investors took advantage of historic lows in asset prices. Preferred and common shares of Petroleo Brasileiro SA , as Petrobras is formally known, jumped more than 7 percent after the company said late Tuesday it would increase the price it charges for fuel at the refinery gate. Investors saw it as welcome news for the heavily-indebted company, which has struggled this year with the fallout from a massive corruption investigation. The advance in Petrobras shares helped put the battered benchmark Bovespa index on track for its biggest intraday gain in two weeks. The broader MSCI Latin American stock index, which has been plumbing a nearly 7-year low in recent days, rose by its most in over a month. Brazil's real rose 1.5 percent against the dollar, with traders citing a Reuters report that President Rousseff will replace Chief of Staff Aloizio Mercadante in an attempt to end bickering within her ruling coalition. Political gridlock in Brasilia has prevented the enactment of the major fiscal reforms needed to stave off further sovereign credit rating downgrades, dragging on the currency. Yields on Brazilian interest rate futures <0#DIJ:> fell sharply across the curve as the rebound in the real, which has weakened 33 percent against the dollar this year, eased the outlook for inflation. Elsewhere in Latin America, Chile's peso rose about 0.8 percent on higher prices for copper, the country's main export. Colombia's peso rose by the same amount, boosted by higher prices for its major export good petroleum. Key Latin American stock indexes and currencies at 1418 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 791.71 1.98 -18.82 MSCI LatAm 1888.51 3.13 -32.87 Brazil Bovespa 45127.0286 2.26 -9.76 6 Mexico IPC 42542.43 1 -1.40 Chile IPSA 3697.21 1.09 -3.99 Chile IGPA 18123.67 0.93 -3.96 Argentina MerVal - - -1 Colombia IGBC 9225.81 0.91 -20.70 Venezuela IBC - - - Currencies daily % YTD % change change Latest Brazil real 4.0061 1.29 -33.66 Mexico peso 16.9195 0.62 -12.86 Chile peso 697.9 0.77 -13.11 Colombia peso 3082 0.77 -22.52 Peru sol 3.218 0.50 -7.43 Argentina peso 9.4150 0.00 -9.19 (interbank) Argentina peso 15.95 0.38 -12.23 (parallel) (Reporting by Bruno Federowski and Asher Levine; Editing by Grant McCool)
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