EMERGING MARKETS-Brazil stocks jump to 10-month high on impeachment bets
(Adds Argentina index jumps 4.5 percent, peso rises on U.S. appeals court decision on debt; updates prices) By Bruno Federowski SAO PAULO, April 13 (Reuters) - Brazilian stocks hit their highest level in nearly 10 months on Wednesday amid expectations of President Dilma Rousseff's ouster, but the country's currency was dented by the heightened intervention of the central bank. Brazil's lower house will vote on Sunday on whether to allow impeachment proceedings against the leftist president to advance to a Senate vote. Lawmakers' support for the survival of her government seemed to dwindle after the Progressive Party (PP) officially left the administration on Tuesday. The party's leader in the lower house said a majority of its 49 deputies supported impeachment. Brazil's stocks and currency have rallied for weeks as many traders bet impeachment could rekindle trust in the embattled economy and ease the approval of austerity measures in Congress. Shares of state-controlled firms such as oil company Petroleo Brasileiro SA and lender Banco do Brasil SA rose, driving the benchmark Bovespa stock index to jump 3.2 percent to its highest since late June 2015. But the Brazilian real pared most of its gains, closing up just 0.4 percent, after the central bank stepped up its intervention to weaken the currency. The bank bought $3.15 billion in the markets through reverse currency swaps on Wednesday following an unprecedented $8 billion purchase the day before. BNP Paribas strategists praised the intervention, saying the real had appreciated beyond what was warranted by macroeconomic fundamentals. Elsewhere in the region, Argentina's MerVal stock index jumped 4.5 percent, and the peso rose a two-month high, after a U.S. appeals court lifted injunctions which should allow the country to pay off some debts in a years-long litigation stemming from its 2002 default. Mexico's IPC stock index gained 0.7 percent while Chile's IPSA rose 0.45 percent, boosted by upbeat Chinese trade data which showed exports returned to growth for the first time in nine months, offering hope about the world's second-biggest economy. Key Latin American stock indexes and currencies at 1959 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 845.03 1.7 4.63 MSCI LatAm 2243.44 2.32 19.83 Brazil Bovespa 53190.69 2.29 22.70 Mexico IPC 45405.75 0.7 5.65 Chile IPSA 3957.24 0.09 7.53 Chile IGPA 19394.81 0.11 6.85 Argentina MerVal 13256.31 4.43 13.54 Colombia IGBC 10135.17 0.57 18.58 Venezuela IBC 15659.55 2.6 7.34 Currencies daily % YTD % change change Latest Brazil real 3.4775 0.41 11.90 Mexico peso 17.4590 0.13 -1.33 Chile peso 670.2 0.45 5.57 Colombia peso 3006.2 0.32 5.15 Peru sol 3.2629 -0.02 4.43 Argentina peso (interbank) 14.3900 0.55 -10.84 Argentina peso (parallel) 14.87 0.93 -4.20 (Reporting by Bruno Federowski; additional reporting by Paula Arend Laier, editing by G Crosse and Grant McCool)
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