EMERGING MARKETS-Brazil stocks gain on poll chatter
SAO PAULO, Oct 14 (Reuters) - Brazilian stocks rose on Tuesday, erasing early losses on market chatter that upcoming polls would boost optimism about the prospects of challenger Aecio Neves to defeat President Dilma Rousseff in this month's election. The Bovespa stock index rose about 1.1 percent, a day after posting its biggest one-day gain in more than three years. Shares initially fell on profit taking after Monday's 4.8 percent jump, which was fueled by investor perceptions that Neves is better-placed to defeat Rousseff. Many investors believe a new administration would enact policies that are more favorable to minority shareholders in state-run companies and help lower the risk premium on local assets. The Bovespa flipped into positive territory later in the session as market players began to speculate that two new polls expected to be released later this week will show Neves gaining ground, traders said. Gains were led by shares of the most widely-traded firms, including lenders Itau Unibanco SA and Banco Bradesco SA, both of which gained about 2.25 percent. The Brazilian real weakened as the safe-haven U.S. dollar rose globally on the back of worrying economic data from Europe, though the poll speculation limited the real's drop. Elsewhere in Latin America, Chile's peso edged higher on rising prices for copper, the country's main export. The Mexican peso also posted modest gains. Central bank chief Agustin Carstens said on Tuesday that Mexican inflation will converge toward the central bank's target of 3 percent by the middle of next year, despite food price shocks that have pushed up the annual rate. Key Latin American stock indexes and currencies at 1650 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 993.28 0.18 -1.12 MSCI LatAm 3304.13 0.75 2.46 Brazil Bovespa 58604.7 1.12 13.78 Mexico IPC 43196.77 0.25 1.10 Chile IPSA 3854.19 -0.11 4.19 Chile IGPA 18912.79 -0.13 3.76 Argentina MerVal 9989.899 -0.5 85.31 Colombia IGBC 12920.03 -0.38 -1.16 Peru IGRA 15581.05 -0.13 -1.10 Venezuela IBC 2890.93 0.05 5.64 Currencies daily % YTD % change change Latest Brazil real 2.3970 -0.22 -1.68 Mexico peso 13.397 0.40 -2.74 Chile peso 587.7 0.14 -10.48 Colombia peso 2048.05 0.00 -5.67 Peru sol 2.904 0.00 -3.82 Argentina peso 8.4750 -0.09 -23.39 (interbank) Argentina peso 14.75 1.36 -32.20 (parallel) (Reporting by Asher Levine; Editing by David Gregorio)
© Thomson Reuters 2017 All rights reserved.