EMERGING MARKETS-Commodities lift Brazil, Argentina shares; Peru gains
(Updates prices, adds Mexico) By Marcelo Teixeira SAO PAULO, April 12 (Reuters) - A combination of strong gains in some commodities and political developments in Brazil and Peru helped to lift shares and currencies in Latin America on Tuesday. A congressional committee in Brazil late on Monday recommended the impeachment of President Dilma Rousseff on charges of breaking budget laws, opening the way for a full lower house vote expected to take place on Sunday. "The political scene is increasingly difficult for the government and the chance of impeachment is getting stronger," Lerosa Investimentos said in a note to clients. Investors believe a new government would improve prospects for the economy in Brazil. Signs of change since the beginning of the year have lifted Brazil's real currency by more than 11 percent, and the stock market by 20 percent. Shares of state-run companies such as Petroleo Brasileiro SA and Centrais Elétricas Brasileiras SA gained on the news about Rousseff, supported as well by the jump in oil prices after Russia and Saudi Arabia took another step towards an agreement for a production freeze. Petrobras gained more than 4 percent. Brazil's Vale, the world's largest iron ore exporter, gained as much as 5 percent as values for its flagship product also jumped on Tuesday. But Brazil's currency interrupted its extended gains after touching an eight-month high against the dollar on Monday, after the central bank offered reverse currency swaps to the market on Tuesday morning. In Argentina, the Merval stock index gained 4.2 percent, while Mexico's peso was also boosted by commodities, rising as much as 1.1 percent in its biggest one-day jump since mid-March. Peru's select stock index extended gains following election results over the weekend that put two pro-business candidates in a runoff for the presidency. The index, which gained almost 12 percent on Monday, was up around 1 percent on Tuesday and was at a nine-month high. Peru's sol also continued to gain against the dollar, reaching 3.2621. Key Latin American stock indexes and currencies at 2058 GMT: Stock indexes Latest Daily pct YTD pct change change MSCI Emerging Markets 832.60 1.04 3.76 MSCI LatAm 2,209.54 3.61 16.54 Brazil Bovespa 52,107.77 3.87 20.20 Mexico IPC 45,091.81 0.74 4.92 Chile IPSA 3,953.68 0.77 7.43 Chile IGPA 19,374.29 0.7 6.74 Argentina MerVal 12,653.72 3.85 8.38 Colombia IGBC 10,060.92 1.9 17.71 Venezuela IBC 15,262.81 0.44 4.62 Currencies Latest Daily pct YTD pct change change Brazil real 3.4918 0.03 11.53 Mexico peso 17.4665 1.01 -1.37 Chile peso 673.2 0.93 5.14 Colombia peso 3,019 1.13 4.74 Peru sol 3.2621 0.55 4.45 Argentina peso (interbank) 14.4550 0.48 -11.34 Argentina peso (parallel) 14.96 0.00 -4.84 (Additional reporting by Paula Arend Laier, Patricia Duarte and Anna Yukhananov; Editing by Diane Craft and Grant McCool)
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