EMERGING MARKETS-Latam currencies, stocks seesaw ahead of BOJ policy meeting

jueves 28 de julio de 2016 11:15 GYT

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
 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
 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)