EMERGING MARKETS-Brazil assets jump on Rousseff woes, Mexico stocks up
(Updates with closing prices) SAO PAULO, Dec 9 (Reuters) - Brazil's stock market surged on Wednesday and the real jumped against the dollar as investors cheered a fresh setback to under-fire President Dilma Rousseff, while Mexico's share index rose to break a five-day losing streak. Mexico's peso dipped 0.3 percent to 17.065 pesos per dollar in a volatile trading day in which crude prices rose on strong Japanese economic data and lower oil storage figures in the United States. However, worries about global oversupply lingered. The Colombian peso rose 0.76 percent to 3,283.10 pesos per dollar adjusting to oil's slump to 2009 lows on Tuesday, when markets were closed for a holiday. Mexico's IPC stock index rose by 0.38 percent, ending the five-day losing run that had knocked 4 percent off it. Brazil's stock market surged by 3.75 percent, while the real appreciated by 1.92 percent against the greenback to close at 3.737 per dollar. Investors cheered after Rousseff's government suffered a new blow on Tuesday, when the lower house of Congress appointed a committee full of her opponents to study whether to impeach her. Still, Brazil's Supreme Court on Wednesday said it had suspended impeachment proceedings against Rousseff until it rules on their validity. Some traders believe an impeachment could help Brazil fight what is likely to be its longest recession since the 1930s by ushering in more market-friendly policies. Others warn that political wrangling could delay efforts to cut spending and raise taxes, possibly triggering a downgrade of the country's sovereign debt. "The current interpretation is that yesterday's events represent a defeat for the government and this is positive for the market," said João Paulo de Gracia Correa, a trader at Correparti brokerage in Curitiba. "But it is still too early and the situation is too premature to have a medium-term assessment," he added. Grupo BTG Pactual SA shares dropped 9 percent to a record low as investors worried that the arrest of its former Chief Executive André Esteves could hamper the bank's performance. The stock has shed more than half its value since Esteves was taken into custody. Latin American stock indexes at 2300 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 795.23 -0.03 -16.84 MSCI LatAm 1,935.61 2.67 -29.04 Brazil Bovespa 46,108.03 3.75 -7.80 Chile IPSA 3,559.16 -0.86 -7.58 Chile IGPA 17,601.99 -0.79 -6.72 Mexico IPC 42,398.0 0.38 -1.73 6 Argentina MerVal 13,302.89 1.77 55.06 Colombia IGBC 7,935.35 0.97 -31.80 Venezuela IBC 14,654.84 3.14 279.78 (Reporting by Bruno Federowski and Jean Luis Arce; Editing by Nick Zieminski and Cynthia Osterman)
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