EMERGING MARKETS-Latam stocks, currencies up as crude recovers
By Bruno Federowski SAO PAULO, April 19 (Reuters) - Latin American stocks and currencies rose on Tuesday as a recovery in oil prices boosted investor sentiment and fostered demand for risky assets. Crude prices jumped on Tuesday after a worker strike in Kuwait nearly halved output in the OPEC member nation. The commodity had slumped on Monday after major oil producers failed to reach an agreement to freeze production. Other basic products followed oil higher, boosting appetite for stocks and currencies from commodities-rich Latin America. "The rebound in investor confidence appears to be driven by the recovery in commodity prices, and crude oil in particular," strategists with Scotiabank wrote in a client note. Colombia's peso was the biggest gainer in the foreign exchange market, jumping to its highest level in five months. The country heavily depends on crude for its exports and tax revenues. The Brazilian real also stood out after the central bank stopped short of intervening to weaken the currency on Tuesday. The central bank has used reverse currency swaps to purchase $29 billion worth of future dollars this month, which has mitigated the effect of a currency rally prompted by investor bets on the ouster of President Dilma Rousseff. After the lower house voted for her impeachment, the Senate could ratify the decision by early May. A simple majority vote would temporarily suspend the leftist President and put Vice President Michel Temer in charge for as long as six months as she faces a Senate trial. Shares of miner Vale SA rose on the back of higher iron ore prices, lifting the benchmark Bovespa stock index. Steelmakers Companhia Siderúrgica Nacional and Gerdau SA also advanced. Key Latin American stock indexes and currencies at 1525 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 855.11 1.35 6.24 MSCI LatAm 2255.42 2.76 19.95 Brazil Bovespa 53958.75 2.01 24.47 Mexico IPC 45669.15 1.44 6.26 Chile IPSA 3992.25 0.69 8.48 Chile IGPA 19571.39 0.62 7.82 Argentina MerVal 13434.66 1.69 15.07 Colombia IGBC 10089.52 0.75 18.04 Venezuela IBC 16107.47 -0.15 10.41 Currencies daily % YTD % change change Latest Brazil real 3.5416 1.55 11.45 Mexico peso 17.2690 0.99 -0.23 Chile peso 657 0.99 8.02 Colombia peso 2902.9 2.28 9.18 Peru sol 3.246 0.77 5.18 Argentina peso (interbank) 14.1000 0.28 -7.93 Argentina peso (parallel) 14.66 1.02 -2.66 (Additional reporting by Priscila Jordão; Editing by David Gregorio)
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