EMERGING MARKETS-Latam currencies, stocks up on global search for yield

martes 9 de agosto de 2016 17:44 GYT
 

(Updates prices)

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.

In stock markets, traders reacted to a fresh batch of corporate reports. Shares of airline loyalty program Smiles SA , a unit of airline Gol Linhas Aéreas Inteligentes SA , fell 1.86 percent despite a 38 percent increase in quarterly earnings.

Mexico's peso jumped 0.67 percent to 18.435 per dollar, its strongest level in three weeks. 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. (Reporting by Bruno Federowski and Noe Torres; editing by Tom Brown and Phil Berlowitz)