EMERGING MARKETS-Latam currencies strengthen as China seeks stable yuan
By Bruno Federowski SAO PAULO, Jan 12 (Reuters) - Latin American currencies strengthened on Tuesday after the Chinese government further moved to stabilize the yuan, whose devaluation triggered a global selloff last week. The Chinese central bank again allowed the currency to rise against the U.S. dollar, while dealers reported aggressive offshore yuan buying by state-owned banks. A drop in the currency had sparked concerns that China's economy could be even weaker than previously thought, slamming commodity prices and assets from economies exporting to China. "Alongside the practical effort to steady the currency, officials appear to be trying to persuade the market that the desire for a 'basically stable' currency remains intact, pushing back against expectations that the yuan will fall," Scotiabank analysts wrote in a client note. A recovery in oil prices also triggered buying of emerging-market currencies. The Mexican peso rose 0.6 percent after hitting a new low on Monday, while the Brazilian real advanced 0.5 percent. Brazilian stocks also gained despite a drop in shares of state-controlled oil company Petroleo Brasileiro SA . Petrobras, as the company is known, trimmed its estimates of capital spending by one-quarter for the 2015-2019 period, warning of further cuts if oil prices and the Brazilian real keep falling. Latin American stock indexes and currencies at 1405 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 724.67 0.18 -8.91 MSCI LatAm 1678.99 1 -9.15 Brazil Bovespa 40199.22 0.62 -7.27 Chile IPSA 3552.19 0.25 -3.48 Chile IGPA 17581.56 0.22 -3.14 Currencies daily % YTD % change change Latest Brazil real 4.0281 0.51 -34.03 Mexico peso 17.7753 0.60 -17.05 Chile peso 729.1 0.30 -16.83 Colombia peso 3245.89 0.53 -26.43 Peru sol 3.417 0.27 -12.82 Argentina peso (interbank) 13.6800 0.51 -37.50 Argentina peso (parallel) 14.39 0.42 -2.71 (Editing by Jeffrrey Benkoe)
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