EMERGING MARKETS-Latam markets rise on China data, Brazil eyes electoral poll

martes 1 de julio de 2014 12:18 GYT

SAO PAULO, July 1 (Reuters) - Latin American currencies and
shares mostly gained on Tuesday following encouraging economic
data from China, though Brazil's stock index was unable to hold
onto early gains as investors speculated on the results of an
upcoming electoral opinion poll. 
    The MSCI Latin American stock index edged
higher, snapping a four-day losing streak after data on Tuesday
showed China's factory activity hit multi-month highs in June.
    China is a key purchaser of Latin American commodities
exports such as copper, soybeans, petroleum and iron ore.
    The data initially boosted shares of Brazilian mining firm
Vale SA, which counts China as its biggest customers,
and the Bovespa stock index as a whole.
    Later in the session, however, shares of state-run oil
producer Petroleo Brasileiro SA accelerated losses,
pulling the index back into negative territory.
    Traders pointed to chatter over the outcome of a
presidential electoral poll scheduled to be released by polling
firm Datafolha as soon as Wednesday.
    In the past, polls showing greater voter support for
President Dilma Rousseff ahead of her bid for re-election in
October have weighed on shares of state-run companies. Many
minority shareholders have accused the administration of
enacting policies that are harmful to their interests.
    Mexican and Chilean shares  were little
    The region's currencies mostly strengthened, with Brazil's
real continuing to hover at the 2.20 per dollar level.
    Most traders see Brazil's central bank defending the
exchange rate at a level between 2.20 and 2.25 reais per dollar
through the use of currency swap contracts.
    "What we're looking at now is how the central bank will act
from here on out," said Marcos Trabbold, a currency trader with
B&T in Sao Paulo. He expects the bank to monitor the market for
a few sessions before deciding when, and at what pace, to begin
rolling over currency swap contracts expiring in August.
    Colombia's peso posted its biggest one-day gain since
April, strengthening 0.8 percent to 1,864 per dollar.
    "Unlike the other currencies, the (Colombian) peso, when it
broke through 1880, had more momentum given that it was a really
important technical level," said Siobhan Morden, head of Latin
America strategy at Jefferies in New York. "The question is
whether it keeps going or whether (the government) fights back."

    Key Latin American stock indexes and currencies at 1548 GMT:
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets           1051.45      0.06       4.8
 MSCI LatAm                      3372.87      0.09      5.28
 Brazil Bovespa                 53055.41     -0.21      3.01
 Mexico IPC                     42778.19       0.1      0.12
 Chile IPSA                      3876.26      0.01      4.79
 Chile IGPA                     18902.26      0.01      3.70
 Argentina MerVal                 8111.5      2.84     50.46
 Colombia IGBC                  14061.27      -0.1      7.57
 Peru IGRA                      16714.11      0.31      6.10
 Venezuela IBC                   2106.03     -0.32    -23.04
 Currencies                                daily %     YTD %
                                            change    change
 Brazil real                      2.2013      0.35      7.06
 Mexico peso                      12.944      0.18      0.66
 Chile peso                        551.9      0.16     -4.67
 Colombia peso                   1862.15      0.89      3.75
 Peru sol                          2.796      0.07     -0.11
 Argentina peso (interbank)       8.1325      0.03    -20.17
 Argentina peso (parallel)         12.03      1.00    -16.87
 (Reporting by Priscila Jordao and Bruno Federowski; Writing by
Asher Levine Editing by W Simon)