EMERGING MARKETS-Latam stocks, currencies up on Japanese stimulus prospects
By Bruno Federowski SAO PAULO, July 11 (Reuters) - Most Latin American stocks and currencies rose on Monday as prospects of fresh stimulus in Japan steered investors toward riskier assets. Japanese Prime Minister Shinzo Abe said he ordered a new round of fiscal stimulus after his coalition emerged victorious from parliamentary elections. His comments added to a bout of bullish sentiment triggered by stronger-than-expected U.S. jobs data published last Friday. The Mexican and Chilean pesos strengthened about 0.4 percent, while the Brazilian real was nearly unchanged as that country's central bank once again intervened to weaken the currency after staying put on Friday. Brazil's benchmark Bovespa stock index rose 1.4 percent, supported by shares of state-controlled oil company Petróleo Brasileiro SA. Analysts at Itaú BBA improved its recommendation for Petrobras, as the company is known, to "outperform" and increased their price target to 14 reais from 9 reais. "Short- and medium-term challenges remain, but we believe they have already been mapped out by the market," Itaú BBA analyst Diego Mendes wrote in a report. Shares of education companies Estácio Participações SA and Kroton Educacional SA both rose after Estácio's board endorsed Kroton's takeover bid. Chile's stock market was nearly flat in morning trade, underperforming its peers. Cencosud fell 4 percent, the biggest loser in both benchmark indexes, after the retailer's owners said they would sell a 5 percent stake in the company. Key Latin American stock indexes and currencies at 1520 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 845.47 2.01 4.37 MSCI LatAm 2294.29 1.54 23.48 Brazil Bovespa 53867.41 1.37 24.26 Mexico IPC 46120.84 0.82 7.31 Chile IPSA 4026.36 0.03 9.41 Chile IGPA 19907.58 0.05 9.67 Argentina MerVal 15057.14 2.5 28.97 Colombia IGBC 9644.47 0.33 12.84 Venezuela IBC 11881.62 0.61 -18.55 Currencies daily % YTD % change change Latest Brazil real 3.2998 -0.21 19.61 Mexico peso 18.4225 0.44 -6.47 Chile peso 657.2 0.35 7.99 Colombia peso 2925.97 0.09 8.32 Peru sol 3.277 0.15 4.18 Argentina peso (interbank) 14.7000 0.00 -11.68 Argentina peso (parallel) 14.85 0.40 -3.91 (Reporting by Bruno Federowski; Additional reporting by Paula Arend Laier; Editing by Jonathan Oatis)
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