EMERGING MARKETS-Brazil's currency firms after government posts primary surplus

lunes 30 de mayo de 2016 16:32 GYT

(Updates with afternoon prices, news from Brazil)
    SAO PAULO, May 30 (Reuters) - The Brazilian real 
gained on Monday after the country's government recorded a
primary budget surplus in April that exceeded market
expectations, easing some concerns about its deficit. 
    Brazil's currency rose 0.9 percent after weakening more than
2 percent last week.
    After posting a deficit in March, Brazil's central
government reported a primary budget surplus of 9.751 billion
reais ($2.72 billion) for April thanks to higher tax revenues
and a decline in subsidies. 
    Brazil, mired in a deep recession, lost its coveted
investment-grade credit rating in 2015 after years of heavy
spending and steep tax breaks under now-suspended President
Dilma Rousseff's administration.
    Interim President Michel Temer, who has replaced Rousseff as
she faces an impeachment trial, has announced a series of
measures aimed at reducing the budget deficit.
    Most other Latin American stocks and currencies seesawed in
thin trading due to market holidays in the United States and
Britain. The Chilean peso was down 0.7 percent. 
    Latin American markets fell on Friday after U.S. Federal
Reserve Chair Janet Yellen hinted the central bank could
increase interest rates soon, reducing the allure of
high-yielding bonds. 
    Shares of state-owned lender Banco do Brasil SA 
rose more than 2 percent after falling to an almost three-month
low on Friday.
    Brazilian Finance Minister Henrique Meirelles said on Monday
the government is not in a hurry to sell shares owned by the
country's sovereign fund, including about 2 billion reais ($557
million) in the lender's stock. 
    Meirelles had said last week the government would consider
dismantling the sovereign fund, triggering a sell-off in Banco
do Brasil shares.
    Key Latin American stock indexes and currencies at 2000 GMT:
 Stock indexes               Latest          Daily   YTD pct
                                               pct    change
 MSCI Emerging Markets            807.78     -0.06      1.78
 MSCI LatAm                     2,064.53      0.29      12.5
 Brazil Bovespa                48,993.48     -0.12     13.02
 Mexico IPC                    46,017.21     -0.23      7.07
 Chile IPSA                     3,949.21      0.05      7.31
 Chile IGPA                    19,478.19     -0.01      7.31
 Argentina MerVal              12,718.33     -0.07      8.93
 Colombia IGBC                  9,674.23     -0.02     13.18
 Venezuela IBC                 15,453.26      0.67      5.93
 Currencies                       Latest     Daily   YTD pct
                                               pct    change
 Brazil real                      3.5774     0.897     10.33
 Mexico peso                     18.4725     -0.14     -6.73
 Chile peso                        690.5     -0.70      2.78
 Colombia peso                   3,061.3      0.22      3.53
 Peru sol                          3.364     -0.42      1.49
 Argentina peso (interbank)      13.9300     -0.07     -6.80
 Argentina peso (parallel)         14.59      0.62     -2.19

 (Reporting by Cesar Bianconi and Patrícia Duarte; Editing by
Dan Grebler and Paul Simao)