EMERGING MARKETS-Ukraine bonds firm; Latam currencies rise

lunes 17 de febrero de 2014 17:15 GYT
 

(Updates prices, adds Russia purchase of Ukraine bonds)
    By Asher Levine and Natsuko Waki
    RIO DE JANEIRO/LONDON, Feb 17 (Reuters) - Ukraine's
sovereign bonds rose across the board on Monday after opposition
protesters ended a two-month occupation of Kiev's city hall and
Russia offered the heavily-indebted country a $2 billion cash
injection.
    Elsewhere, Latin American currencies mostly advanced,
tracking global weakness in the dollar, while emerging market
stocks rose on encouraging lending data from China.
    Ukrainian opposition protesters opened a road to limited
traffic, meeting an amnesty offer aimed at easing a stand-off
over President Viktor Yanukovich's rule. Meanwhile, authorities
withdrew riot police from a flashpoint district of the capital.
    Ukraine's dollar bonds maturing in 2014, 2020 and 2023 all
rose around one to two points  
. But the country's hryvnia currency fell 0.8
percent on the day to 8.84 per dollar, in trading thinned
by a market holiday in the United States.
    Earlier this month Ukraine put in place capital controls to
help stem a slide in the hryvnia. 
    "Activity is small today. Tomorrow, we are likely to see
very large activity," said a Kiev-based trader. Another trader
said, "(We) hope the central bank steps in tomorrow to prevent
the potential weakening of the hryvnia."
    But the country received a partial reprieve late on Monday
after Russia said it will buy $2 billion worth of Ukrainian
eurobonds by the end of this week. The move, announced by
Russian Finance Minister Anton Siluanov, is part of a $15
billion loan plan agreed between Russian President Vladimir
Putin and his Ukrainian counterpart. 
    In Latin America, currencies mostly strengthened as
investors continued to weigh the outlook for U.S. growth
following soft economic data last week, which has sapped demand
for the greenback in global markets. 
    Brazil's real and Mexico's peso both rose
about 0.2 percent.
    Argentina's peso gained its most in nearly two weeks
as banks continued to sell dollars to adjust to a central bank
rule change earlier this month that limits their net foreign
currency positions.
    Yields on Brazilian interest rate futures fell
after a weekly central bank poll showed economists expect
Brazil's economy to grow just 1.79 percent in 2014, down from a
1.9 percent estimate a week earlier.
    "People are seeing that the central bank may be less
aggressive (in hiking rates)," said Silvio Campos Neto, an
economist with Tendencias in Sao Paulo.
    The benchmark MSCI emerging market share index 
rose 0.7 percent after data showed Chinese banks disbursed the
highest volume of loans in any month in four years in January,
suggesting the world's second-biggest economy may not be cooling
as much as some fear. 
    China is a key purchaser of commodities such as iron-ore,
soybeans and copper from other developing nations.
    MSCI's Latin American stock index reversed
early gains, however, as a fall in steelmaking shares pushed
Brazil's Bovespa stock index to a 1.3 percent loss.
    Brazil's raw steel output fell 1.4 percent in January on an
annual basis, data showed on Monday.
    Elsewhere, Nigeria's naira pared early losses against
the dollar after the central bank offered to sell $600 million
at its twice-weekly forex auction on Monday, its highest offer
in two years. 
    
    For GRAPHIC on emerging market FX performance 2014, see link.reuters.com/jus35t
    For GRAPHIC on MSCI emerging index performance 2014, see link.reuters.com/weh36s
    For GRAPHIC on MSCI emerging Europe performance 2014, see link.reuters.com/jun28s
    For GRAPHIC on MSCI frontier index performance 2014, see link.reuters.com/zyh97s
    For CENTRAL EUROPE market report, see 
    For TURKISH market report, see 
    For RUSSIAN market report, see )

 (Additional reporting by Marcin Goettig in Kiev and Bruno
Federowski in Sao Paulo; Editing by Catherine Evans and Diane
Craft)