EMERGING MARKETS-Latam currencies, markets rally on oil rebound, stimulus bets
(Adds closing prices, stock market figures) By Bruno Federowski SAO PAULO, Jan 22 (Reuters) - Latin American currencies and stock markets rallied on Friday as a rebound in oil prices and bets on new economic stimulus in the euro zone rekindled global risk appetite. A cold snap across the United States and Europe raised expectations of more demand for heating oil, lifting crude prices from 12-year lows. Comments by European Central Bank President Mario Draghi hinting at fresh stimulus also bolstered investor sentiment. The Mexican peso closed up 1.48 percent and the Colombian peso strengthened by 0.3 percent. Both countries are major oil producers. Shares in struggling Mexican construction firm ICA leapt by nearly 62 percent, fueled by hopes the company may win some additional work and could sell more assets, traders said. It was the biggest gain in nearly 17 years in ICA's shares, which hit a record low of 1.89 pesos this week. The Brazilian real also got a lift from higher commodity prices, advancing 1.32 percent after closing the previous session at an all-time low. Traders remained cautious, however, following an unexpected central bank decision on Wednesday to leave interest rates stable. "Although we do not believe today's relief will last, it should be enough to end the week on a positive note," Guide Investimentos analysts wrote in a client note. The Argentine peso underperformed, weakening 0.87 percent ahead of a meeting on Feb. 1 between government officials and U.S. holdout creditors. President Mauricio Macri said on Friday he hoped to reach a settlement early this year, although negotiations have not progressed much. However, Argentina's main stock index rose by more than five percent, boosted by companies in the oil industry. Latin American stock indexes at 2230 GMT: Stock indexes Latest Daily pct YTD pct change change MSCI Emerging Markets 710.66 3.22 -10.51 MSCI LatAm 1,620.67 2.37 -11.43 Brazil Bovespa 38,031.22 0.83 -12.27 Mexico IPC 41,621.31 1.1 -3.16 Chile IPSA 3,531.56 1.64 -4.04 Chile IGPA 17,491.10 1.45 -3.64 Argentina MerVal 10,329.90 5.19 -11.52 Colombia IGBC 8,426.09 2.86 -1.42 Venezuela IBC 14,434.02 -0.4 -1.06 (Reporting by Bruno Federowski; Editing by Alan Crosby)
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