EMERGING MARKETS-Brazil stocks outperform Latam as banks, state-run firms gain
BRASILIA, April 27 (Reuters) - Brazilian stocks rose nearly 2 percent on Wednesday as growing market optimism about an expected government change boosted shares of banks and state-run companies. Brazil's currency, the real, and other exchange rates across Latin America were little changed though, as investors awaited an upcoming interest rate decision in the United States. Brazil's Bovespa stock index outperformed the broader MSCI Latin American stock index on signs Vice President Michel Temer would implement a more market-friendly economic policy if he replaces President Dilma Rousseff in coming weeks, as expected. Rousseff is widely expected to be suspended from office and be put on trial for allegedly breaking budget laws. Sources close to Temer told Reuters he would replace the board of the central bank and that of state-run lenders as part of a drive to regain investors' confidence. Shares of state-run oil producer Petroleo Brasileiro SA rose more than 3 percent to an eight-month high, while shares of state-run lender Banco do Brasil SA gained more than 2 percent. Quarterly earnings reports also drove up shares in Brazil and Mexico. Shares of Wal-Mart's Mexican subsidiary gained 7 percent after net income rose 30 percent in the first quarter, above forecasts, while shares of Banco Santander Brasil SA gained more than 4 percent after increased loan renegotiations helped it beat profit expectations. Shares of Fibria SA, the world's largest producer of eucalyptus pulp, bucket the trend and fell 3 percent. A stronger dollar helped the company return to profit in the first quarter, but an increase in costs and a decline in volumes disappointed investors, according to a research note by BTG Pactual. Key Latin American stock indexes and currencies at 1616 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 841.77 -0.1 6.11 MSCI LatAm 2251.58 1.13 21.67 Brazil Bovespa 53933.17 1.6 24.41 Mexico IPC 45792.05 0.83 6.55 Chile IPSA 3960.98 0.21 7.63 Chile IGPA 19480.24 0.17 7.32 Argentina MerVal 13631.23 0.06 16.75 Colombia IGBC 10107.53 0.05 18.25 Venezuela IBC 15683.22 0 7.51 Currencies daily % YTD % change change Latest Brazil real 3.5393 -0.58 11.52 Mexico peso 17.3840 -0.10 -0.89 Chile peso 667.1 0.13 6.39 Colombia peso 2949.15 0.16 7.46 Peru sol 3.2912 -0.25 3.73 Argentina peso (interbank) 14.2200 0.62 -8.70 Argentina peso (parallel) 14.71 0.54 -2.99 (Reporting by Silvio Cascione; Editing by Meredith Mazzilli)
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