EMERGING MARKETS-Eastern Europe bonds, stocks advance on Ukraine deal; Brazil's real gains

viernes 21 de febrero de 2014 14:12 GYT

By Asher Levine and Sujata Rao

SAO PAULO/LONDON Feb 21 (Reuters) - Eastern and Central European bonds and stocks gained on news of a deal on Friday to end a violent standoff in Ukraine, while Brazil's real currency extended gains as market analysts gave a cautious thumbs up to a new fiscal savings plan.

In the Ukrainian capital Kiev, opposition leaders signed an EU-mediated accord with President Viktor Yanukovich, aiming to resolve a political crisis and opening the way for an early presidential election this year.

Hopes for a possible end to the crisis and street violence that has killed at least 77 people this week also supported assets in nearby emerging markets, including Turkey and Central and Eastern Europe.

Ukraine's dollar-denominated bond maturing in June 2014 rose 1.417 point to bid 96.667, according to Tradeweb. Ukraine's 2017 dollar bond rose 3.045 points to bid 87.154, off recent record lows of 83, according to Reuters data.

Debt insurance costs on Ukraine, which had hit their highest since 2009, also fell by more than 3 percent, according to Markit's five-year credit default swap quotes.

Returns on Russian, Hungarian and Croatian bonds rose modestly, and Turkish bond returns strengthened by 0.51 percent, according to J.P. Morgan's Emerging Markets Bond Plus index .

Stock markets also rallied in Russia, Poland and Romania and edged higher in Hungary.   Continuación...