EMERGING MARKETS-Emerging stocks, currencies up on Japanese stimulus

lunes 11 de julio de 2016 12:01 GYT
 

By Bruno Federowski
    SAO PAULO, July 11 (Reuters) - Emerging market 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.
 
    MSCI's benchmark EM index climbed 2 percent to its
highest in 2-1/2 months, while EM dollar bond yield spreads were
at the tightest levels in almost a year .
    "This resilience of EM bonds can also be explained by the
fact that the fixed income market is facing what has become a
structural problem: the negative rates in Europe and Japan",
Regis Chatellier, EM credit strategist at Societe Generale, told
clients.
    "In this difficult environment, investors have to find a
source of yield somewhere, and emerging markets clearly appear
as a valid alternative for this".
    He said he upped his recommendation on EM sovereign debt to
"neutral," with big overweight positions in Colombia and
Argentina.
    The positive tone spilled into currency markets, with the
Mexican  and Chilean pesos strengthening
about 0.2 percent.
    But the Brazilian real slipped 0.4 percent as the
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 1550 GMT:
 Stock indexes                               daily %    YTD %
                                              change   change
                                   Latest             
 MSCI Emerging Markets               845.43        2     4.37
 MSCI LatAm                         2288.34     1.28    23.48
 Brazil Bovespa                    53873.77     1.38    24.28
 Mexico IPC                        46075.72     0.72     7.21
 Chile IPSA                         4029.31     0.11     9.49
 Chile IGPA                        19922.07     0.12     9.75
 Argentina MerVal                  15046.21     2.42    28.87
 Colombia IGBC                      9646.68     0.36    12.86
 Venezuela IBC                     11881.62     0.61   -18.55
                                                             
 Currencies                                  daily %    YTD %
                                              change   change
                                                      
                                     Latest           
 Brazil real                         3.3068    -0.42    19.36
 Mexico peso                        18.4900     0.07    -6.81
 Chile peso                           658.4     0.17     7.79
 Colombia peso                         2935    -0.21     7.98
 Peru sol                             3.279     0.09     4.12
 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 Sujata
Rao and Paula Arend Laier; Editing by Tom Brown)