EMERGING MARKETS-Latam stocks, currencies rise as stimulus hopes boost markets
By Bruno Federowski SAO PAULO, July 12 (Reuters) - Latin American stocks and currencies advanced on Tuesday as hopes of economic stimulus in Japan and the UK sustained investor appetite for higher-risk emerging market assets. Japan's Prime Minister Shinzo Abe ordered a fresh fiscal package by the end of this month in an effort to stimulate tepid private consumption and investment. Earlier on Tuesday, former U.S. Federal Reserve Chairman Ben Bernanke told Abe the Bank of Japan still has tools available to support the economy. Traders also bet the Bank of England could take measures to protect Britain's economy from the fallout of last month's decision to leave the European Union following comments by Governor Mark Carney. MSCI's benchmark emerging markets index climbed more than 1 percent to its highest since last November. Brazil's real strengthened about 1 percent even as the central bank once again intervened to cushion the currency's rally, while the country's benchmark Bovespa stock index advanced 1.2 percent. Shares of miner Vale SA gave the biggest boost to the index, jumping nearly 5 percent while tracking an increase in prices of China-listed iron ore contracts .IO62-CNI=SI. Stocks of steelmakers Gerdau SA and Companhia Siderúrgica Nacional also ranked among the biggest gainers. Shares of GPA SA rose to their highest in two months after Brazil's biggest retailer booked accelerating sales growth for the second quarter, boosting hopes that the company has turned a corner after a two-year recession. Key Latin American stock indexes and currencies at 1540 GMT: Stock indexes Latest Daily YTD pct pct change change MSCI Emerging Markets 855.75 1.07 6.62 MSCI LatAm 2,333.36 1.55 25.57 Brazil Bovespa 54,630.60 1.24 26.02 Mexico IPC 46,417.45 0.52 8.00 Chile IPSA 4,063.12 0.72 10.40 Chile IGPA 20,069.41 0.63 10.57 Argentina MerVal 15,154.02 1.17 29.80 Colombia IGBC 9,744.54 0.64 14.01 Venezuela IBC 11,929.50 0.4 -18.23 Currencies Latest Daily YTD pct pct change change Brazil real 3.2717 1.12 20.64 Mexico peso 18.3040 0.92 -5.87 Chile peso 657.5 0.49 7.94 Colombia peso 2,907.7 0.85 9.00 Peru sol 3.28 0.00 4.09 Argentina peso (interbank) 14.5800 0.41 -10.96 Argentina peso (parallel) 15.03 0.00 -5.06 (Reporting by Bruno Federowski; additional reporting by Paula Arend Laier, editing by G Crosse)
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