EMERGING MARKETS-Latam currencies, stocks up on global search for yield
By Bruno Federowski SAO PAULO, Aug 9 (Reuters) - Latin American currencies and stocks rose on Tuesday as traders kept up demand for higher yields, with the Brazilian real strengthening to a new one-year high. Investors have been on the hunt for riskier assets since Friday, when stronger-than-expected U.S. jobs data raised optimism over the global economy. A separate report on Tuesday showing slower decreases in Chinese factory prices in July also pleased traders, allaying concerns of deflation in the world's No. 2 economy. The Brazilian real strengthened past 3.15 per U.S. dollar for the first time since July 2015. The move was magnified by thin trading volumes as many investors kept to the sidelines as Congress prepared to vote on key legislation on regional debt. The Senate is also expected to take additional steps in the impeachment process of suspended President Dilma Rousseff, advancing toward a final vote by the end of August. "All eyes are on Congress today. The votes will be a gauge of the government's policy clout," said José Carlos Amado, a trader with Spinelli brokerage. In stock markets, traders reacted to a fresh batch of corporate reports. Shares of airline loyalty program Smiles SA , the unit of airline Gol Linhas Aéreas Inteligentes SA, inched up 0.3 percent following a 38 percent increase in quarterly earnings. Mexico's peso jumped as much as 1 percent to the strongest in one month. Coupled with a smaller-than-expected increase in annual inflation, the move reduced expectations of an interest rates increase this week. Analysts polled by Reuters expect Mexico's central bank to hold its key lending rate on Thursday, but increase it by 25 basis points in the fourth quarter. Key Latin American stock indexes and currencies at 1450 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 901.31 0.65 12.77 MSCI LatAm 2478.50 1.47 33.49 Brazil Bovespa 57784.06 0.26 33.30 Mexico IPC 47717.50 0.74 11.03 Chile IPSA 4143.26 0.1 12.58 Chile IGPA 20468.15 0.09 12.76 Argentina MerVal 15502.79 0.84 32.78 Colombia IGBC 9737.23 0.41 13.92 Venezuela IBC 12535.74 1.62 -14.07 Currencies daily % YTD % change change Latest Brazil real 3.1340 1.04 25.94 Mexico peso 18.4000 0.87 -6.36 Chile peso 652.4 0.28 8.78 Colombia peso 2968.86 0.85 6.75 Peru sol 3.299 0.42 3.49 Argentina peso (interbank) 14.7700 -0.68 -12.10 Argentina peso (parallel) 15.3 0.20 -6.73 (Reporting by Bruno Federowski; Editing by Tom Brown)
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