EMERGING MARKETS-Brazil stocks rise after Kroton says considering Estácio deal
By Bruno Federowski and Paula Arend Laier SAO PAULO, June 2 (Reuters) - Brazilian equities rose on Thursday after Kroton Educacional SA said it was considering a purchase of rival Estácio Participações SA, boosting shares of both education companies. Kroton, the world's biggest private education company, jumped by as much as 11.5 percent. Estácio shot up almost 20 percent, its biggest daily gain since October 2008. Kroton said in a securities filing it had hired Itaú BBA and law firm Barbosa Müssnich Aragão to advise on the possible all-stock deal. Hopes that interim President Michel Temer could have an easier time gathering lawmaker support than his predecessor Dilma Rousseff also fostered appetite for Brazilian assets. The lower house of Congress, in a first round vote on Thursday, approved a constitutional amendment that would free up about 120 billion reais in funds currently earmarked for special purposes. Backed by Temer's government, the lower house also sanctioned pay raises for military and civil servants that will cost about 4 billion reais ($1.1 billion) this year. "This points in the opposite direction of fiscal austerity but could also increase governability. In net terms, it might not be so negative," said SLW brokerage trader João Paulo de Gracia Corrêa. The loss of two ministers to a corruption scandal has not set back Temer's plans to balance Brazil's government accounts and return the country to growth, his chief of staff told Reuters on Thursday. Key Latin American stock indexes and currencies at 1550 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 809.03 0.22 1.65 MSCI LatAm 2055.24 0.52 11.74 Brazil Bovespa 49469.08 0.93 14.12 Mexico IPC 45665.57 0.24 6.25 Chile IPSA 3930.30 0.01 6.80 Chile IGPA 19365.67 0.01 6.69 Argentina MerVal 12579.19 -0.37 7.74 Colombia IGBC 9667.83 0.01 13.11 Venezuela IBC 15543.11 -0.08 6.55 Currencies daily % YTD % change change Latest Brazil real 3.5927 -0.17 9.86 Mexico peso 18.6015 -0.42 -7.37 Chile peso 691.4 0.06 2.65 Colombia peso 3112.21 0.03 1.83 Peru sol 3.3639 0.03 1.49 Argentina peso (interbank) 13.9250 0.22 -6.77 Argentina peso (parallel) 14.37 0.42 -0.70 (Reporting by Bruno Federowski and Paula Arend Laier; Editing by Dan Grebler)
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