EMERGING MARKETS-Latam currencies rebound; Petrobras supports Bovespa
SAO PAULO, Aug 6 (Reuters) - Brazil's benchmark stock index rose on Wednesday, bolstered by shares of oil producer Petrobras as investors placed bets on the outcome of an electoral poll due to be released later this week. The broader MSCI Latin American stock index rose for the third session in four, while most of the region's currencies retraced some of Tuesday's losses. Brazil's Bovespa stock index nearly erased the previous session's loss, led by a more than 3.5 percent gain in shares of state-run oil firm Petroleo Brasileiro SA. Investors have their eyes on the next major electoral poll, expected after the market close on Thursday, as the company's shares tend to swing on the outlook for October's presidential race. Many investors are convinced that a defeat for incumbent President Dilma Rousseff would lead to more favorable government policies toward the company and its minority shareholders. The Bovespa was pressured to the downside by shares of telecommunications firm Grupo Oi, which reported a second-quarter net loss earlier on Wednesday. In currency markets, Chile's peso extended the previous session's losses, falling to its weakest level in over five years. The peso has been hit in recent sessions by lower prices for copper, the country's main export, as well as a worse than expected domestic economic activity reading. Other currencies in the region rebounded slightly from the previous session's losses, including the Mexican peso, which touched its weakest level in over four months on Tuesday. Brazil's real also clawed higher, trading at 2.275 against the dollar after losing over 1 percent in the previous session. "The dollar gained a lot in recent days (against the real), it would be hard to see much more room to gain today," said Jaime Ferreira, head of currencies at Sao Paulo's Intercam. Uncertainty over how quickly the U.S. economy is growing will probably remain the main driver of Latin American currency markets in the coming months, a Reuters poll showed on Wednesday. A separate Reuters poll also suggested the risk of another selloff in emerging market currencies within the next year remains high. Key Latin American stock indexes and currencies at 1647 GMT: Stock indexes Latest Daily YTD pct pct change change MSCI Emerging Markets 1,057.4 -0.54 6.03 MSCI LatAm 3,433.85 0.28 6.98 Brazil Bovespa 56,566.76 0.65 9.82 Mexico IPC 44,463.52 -0.04 4.06 Chile IPSA 3,934.61 -0.15 6.36 Chile IGPA 19,175.97 -0.13 5.21 Argentina MerVal 8,253.609 2.35 53.10 Colombia IGBC 14,255.69 -0.05 9.06 Peru IGRA 16,888.42 0.6 7.20 Venezuela IBC 2,185.43 0.13 -20.14 Currencies Daily YTD pct pct Latest change change Brazil real 2.2744 0.35 3.63 Mexico peso 13.2492 0.35 -1.65 Chile peso 577 -0.03 -8.82 Colombia peso 1,885.49 0.40 2.47 Peru sol 2.81 0.11 -0.60 Argentina peso (interbank) 8.2675 0.00 -21.47 Argentina peso (parallel) 12.77 0.00 -21.69 (Reporting by Bruno Federowski; Writing by Asher Levine, editing by G Crosse)
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