EMERGING MARKETS-Brazil markets jump as Neves gains momentum in election

lunes 13 de octubre de 2014 10:02 GYT

SAO PAULO, Oct 13 (Reuters) - Brazilian financial markets
shot higher on Monday as investors saw a higher likelihood of
challenger Aecio Neves defeating President Dilma Rousseff in
this month's election.
    Brazil's Bovespa stock index climbed its most in a
week, while the nation's currency, the real , erased
the previous session's losses.
    A survey of voter intentions by pollster Sensus released on
Saturday showed Neves with about 58.8 percent support, versus
41.2 percent for Rousseff, ahead of the Oct. 26 runoff vote.
Although recent polls from more widely watched research firms
showed the two candidates were running neck and neck, traders
seized on the data as a reason to pick up shares of state-run
companies such as Petrobras.
    Preferred shares of the oil producer formally known as
Petroleo Brasileiro SA jumped nearly 6 percent. Many
investors believe a new administration would enact policies that
are more favorable to minority shareholders in the company.
    Investors also cheered a formal endorsement of Neves by
third-placed candidate Marina Silva on Sunday, which should
improve his chances of defeating Rousseff.
    "This is all very good news for Aecio's campaign," said
Joaquim Kokudai, a portfolio manager at Effectus Investimentos
in Sao Paulo, adding that the market should show an even more
positive reaction should future polls confirm Neves' advance. 
    Yields on Brazilian interest rate futures <0#DIJ:> fell
across the curve as the real strengthened about 1.4 percent. A
Neves win is expected to lower Brazil's risk profile among
global investors and increase demand for local assets.
    Elsewhere in Latin America, Chile's peso climbed
alongside higher prices for copper, the country's main
export, while Mexico's peso erased Friday's loss.
    Local currencies also received a boost after U.S. Federal
Reserve officials on Saturday said the bank could delay an
increase in U.S. interest rates if the global economy remains
weak enough to warrant it. 
    Colombia's financial markets were closed for the Columbus
Day holiday.
    Key Latin American stock indexes and currencies at 1316 GMT:
 Stock indexes                        daily %    YTD %
                             Latest    change   change
 MSCI Emerging Markets        992.52     0.27    -1.28
 MSCI LatAm                  3271.85     2.79    -0.56
 Brazil Bovespa             57304.87      3.6    11.26
 Mexico IPC                 43506.02     0.16     1.82
 Chile IPSA                  3848.07     0.42     4.02
 Chile IGPA                 18900.04     0.47     3.69
 Argentina MerVal          10040.239     -1.6    86.24
 Colombia IGBC                     -        -        -
 Peru IGRA                  15547.16        0    -1.31
 Venezuela IBC                2824.3        0     3.21
 Currencies                           daily %    YTD %
                                       change   change
 Brazil real                  2.3935     1.22    -1.53
 Mexico peso                 13.4192     0.46    -2.90
 Chile peso                    588.5     0.59   -10.60
 Colombia peso                     -        -        -
 Peru sol                      2.904     0.00    -3.82
 Argentina peso               8.4650     0.12   -23.30
 Argentina peso                 14.9    -0.47   -32.89
 (Reporting by Asher Levine; Editing by Lisa Von Ahn)