EMERGING MARKETS-Brazil assets jump as protests against Rousseff in 2nd day

jueves 17 de marzo de 2016 17:56 GYT

(Adds broader regional view, updates prices)
    By Bruno Federowski
    SAO PAULO, March 17 (Reuters) - Brazil's stocks and currency
jumped on Thursday after the release of a taped conversation
between President Dilma Rousseff and former President Luiz
Inacio Lula da Silva roiled the country's political landscape
and sparked a second straight day of mass demonstrations.
    Most Latin American currencies also rose, with the Chilean
peso gaining 2.4 percent, its biggest jump in seven
years, after the U.S. Federal Reserve signaled a slower pace of
policy tightening, bolstering emerging market assets.
    The tapped phone call bolstered Brazilian opposition claims
that Lula's nomination as Rousseff's chief of staff was more of
an effort to shield him from a money laundering probe and
sparked demands for her ouster. 
    "The probability of President Rousseff finishing her term is
minimal," analysts with Guide Investimentos wrote in a client
    Many traders believe a change in government would be the
first step in recovering investors' trust in Latin America's
largest economy.
    Brazil's benchmark Bovespa stock index jumped 6.6
percent, its biggest daily rise since early 2009.
State-controlled companies were among the biggest gainers, with
shares in state-controlled Banco do Brasil SA jumping
as much as 20 percent.
    The Brazilian real rose as much as 3 percent, its
biggest daily spike in nearly half a year, leading hefty gains
in major Latin American currencies after the Fed signaled a
dovish stance and oil prices hit their highest this year.
    The Fed's planned two rate increases this year, half the
number seen in December, would benefit higher-risk emerging
markets, which generally offer higher returns. 
    Currencies in commodity exporters like Chile and Colombia
were also supported by higher oil prices, which surged on
optimism that major producers would strike an output freeze deal
next month. 
    The Chilean peso shot up to its highest against the
U.S. dollar since the end of July, while Colombia's currency  
 rose to its highest in nearly four months. In Mexico, the
peso shot up 1.6 percent, nearly erasing its losses for the
year, while the benchmark stock index rose to its highest
since early November.
    Key Latin American stock indexes and currencies at 2100 GMT:
 Stock indexes                  Latest      Daily     YTD pct
                                             pct      change
 MSCI Emerging Markets             816.90      3.25       2.87
 MSCI LatAm                      2,138.82       7.9      16.89
 Brazil Bovespa                 50,913.79       6.6      17.45
 Mexico IPC                     45,435.09      1.53       5.72
 Chile IPSA                      3,898.11      0.96       5.92
 Chile IGPA                     19,091.19      0.92       5.18
 Argentina MerVal               12,972.54      3.43      11.11
 Colombia IGBC                   9,606.28       0.9      12.39
 Venezuela IBC                  14,991.00      1.45       2.76
 Currencies                     Latest      Daily     YTD pct
                                             pct      change
 Brazil real                       3.6505      2.31       7.51
 Mexico peso                       17.318      1.57      -0.51
 Chile peso                         669.6      2.42       5.65
 Colombia peso                   3,069.53      2.87       3.15
 Peru sol                          3.3691      0.06       1.32
 Argentina peso (interbank)       14.9000     -1.92     -14.77
 Argentina peso (parallel)          15.53     -0.71      -8.83

 (Reporting by Bruno Federowski, additional reporting by Paula
Arend Laier and Anna Yukhananov; Editing by G Crosse and Dan