EMERGING MARKETS-Latam markets rebound as global markets recover
SAO PAULO, Oct 17 (Reuters) - Latin American currencies and stocks rebounded on Friday, tracking global markets higher as concerns over U.S. economic growth eased. The MSCI Latin American stock index nearly erased the previous session's losses, with Brazilian markets buoyed by election bets. Global equities rallied on Friday on strong U.S. earnings reports eased concerns about the impact of weak global demand on U.S. growth and businesses. Brazil's Bovespa stock index and real currency followed suit as investors stepped up demand for riskier assets after a two-session sell-off. "We had some exaggerated pessimism in recent days and that is being corrected today, both here and abroad," said Andre Santoro, an analyst with Brasif Gestao in Rio de Janeiro. The real gained almost 1 percent, while the Bovespa rose about 2 percent. Traders said the gains were supported by perceptions that market-friendly challenger Aecio Neves won a debate with President Dilma Rousseff late on Thursday. Brazil goes to the polls on Oct. 26. Many investors hope a new administration would enact policies that are more favorable to state-run enterprises. Elsewhere in Latin America, both the Colombian and Mexican pesos strengthened about 0.25 percent, while Chile's peso gained about 0.3 percent. Chile's central bank cut the benchmark interest rate by 25 basis points to 3.0 percent on Thursday, as widely expected, but removed its easing bias in a likely signal a year-long loosening cycle was over. Key Latin American stock indexes and currencies at 1748 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 977.22 0.68 -3.2 MSCI LatAm 3155.51 2.19 -3.53 Brazil Bovespa 55483.47 2.18 7.72 Mexico IPC 43409.08 1.17 1.60 Chile IPSA 3773.39 -0.12 2.01 Chile IGPA 18562.33 -0.05 1.84 Argentina MerVal 10451.96 4.74 93.88 Colombia IGBC 13130.06 1.06 0.45 Peru IGRA 16194.06 1.89 2.80 Venezuela IBC 3056.66 -0.04 11.70 Currencies daily % YTD % change change Latest Brazil real 2.4418 0.87 -3.48 Mexico peso 13.5182 0.31 -3.61 Chile peso 586.58 0.33 -10.27 Colombia peso 2062.99 0.25 -6.35 Peru sol 2.903 0.03 -3.79 Argentina peso 8.4725 0.03 -23.37 (interbank) Argentina peso 14.68 -0.20 -31.88 (parallel) (Reporting by Bruno Federowski; Writing by Asher Levine; Editing by David Gregorio)
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