EMERGING MARKETS-Latam currencies, stocks seesaw ahead of BOJ policy meeting
By Bruno Federowski SAO PAULO, July 28 (Reuters) - Most Latin American currencies and stocks seesawed in thin trading volumes on Thursday as traders kept to the sidelines ahead of a Bank of Japan policy meeting. Tokyo's decision to unveil a $267 billion stimulus package lifted hopes that the BOJ could follow along and inject more money in the economy when it meets on Friday. Part of that capital could flow into emerging markets, which offer relatively high financial returns amid a global environment of rock-bottom yields. The U.S. Federal Reserve left interest rates unchanged on Wednesday and offered no signs of rush in increasing them over the coming months, leading some investors to pare bets on a September hike. The Mexican peso slipped 0.4 percent while the Brazilian real was nearly flat. Brazil's benchmark Bovespa stock index dropped 1.5 percent, underperforming its regional peers as the corporate reports season rolled on. Shares of Banco Bradesco SA were the biggest weight on the index after Brazil's No. 3 listed bank said it expected to boost loan-loss provisions more than had been forecast this year, dragging other financial shares along. Retailer GPA SA posted a second-quarter loss five times bigger than expected, hammering its shares to their biggest daily loss since 2001. But losses were limited by a rise in shares of cosmetics company Natura SA as some analysts saw bullish signs in its second-quarter report, despite a 22 percent drop in net profit. Analysts with Brasil Plural brokerage cited a rebound in sales as well as smaller operational leverage. Key Latin American stock indexes and currencies at 1500 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 873.89 -0.02 10.06 MSCI LatAm 2334.80 -0.89 28.74 Brazil Bovespa 56024.20 -1.46 29.24 Mexico IPC 46612.86 -0.43 8.46 Chile IPSA 4144.02 -0.06 12.60 Chile IGPA 20478.87 -0.02 12.82 Argentina MerVal 15551.91 -0.93 33.20 Colombia IGBC 9693.68 -0.78 13.41 Venezuela IBC 12438.20 0.94 -14.74 Currencies daily % YTD % change change Latest Brazil real 3.2755 -0.16 20.50 Mexico peso 18.8960 -0.39 -8.82 Chile peso 664.7 0.35 6.77 Colombia peso 3085.8 -0.25 2.71 Peru sol 3.351 0.00 1.88 Argentina peso (interbank) 15.0300 -0.20 -13.62 Argentina peso (parallel) 15.51 0.26 -7.99 (Reporting by Bruno Federowski; Additional reporting by Paula Arend Laier; Editing by Meredith Mazzilli)
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