EMERGING MARKETS-Latam markets gain after Fed holds U.S. rates
(Recasts with U.S. Fed decision, updates prices) BRASILIA, April 27 (Reuters) - Most Latin American stock markets and currencies rose on Wednesday after the Federal Reserve announced it would keep U.S. interest rates unchanged, boosting demand for higher-yielding assets. Mexico's benchmark IPC stock index jumped 1.2 percent after the Fed decision to its highest level since the beginning of the month, overcoming five prior sessions of losses. Brazilian stocks also surged on Wednesday, gaining 2.6 percent, as growing market optimism about an expected government change boosted shares of banks and state-run companies. 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. Shares of state-run oil producer Petroleo Brasileiro SA , known as Petrobras, rose nearly 6 percent to an eight-month high, while shares of state-run lender Banco do Brasil SA gained 2.5 percent. Quarterly earnings reports also drove up shares in Brazil and Mexico. Shares of Wal-Mart's Mexican unit surged 8 percent, its biggest one-day gain in more than a year, after net income rose 30 percent in the first quarter, above forecasts. Shares of Banco Santander Brasil SA rose 2.4 percent after increased loan renegotiations helped it beat profit expectations. Key Latin American stock indexes and currencies at 1955 GMT: Stock indexes Latest Daily YTD pct pct change change MSCI Emerging Markets 844.59 0.23 6.11 MSCI LatAm 2,276.88 2.27 21.67 Brazil Bovespa 54,494.90 2.66 25.71 Mexico IPC 45,945.59 1.16 6.91 Chile IPSA 3,979.58 0.68 8.13 Chile IGPA 19,557.90 0.56 7.75 Argentina MerVal 13,736.50 0.84 17.66 Colombia IGBC 10,089.67 -0.12 18.04 Venezuela IBC 15,705.65 0.14 7.66 Currencies Latest Daily YTD pct pct change change Brazil real 3.5243 0.13 10.71 Mexico peso 17.3105 0.32 -0.47 Chile peso 665.4 0.51 6.24 Colombia peso 2,932 0.74 7.49 Peru sol 3.2852 -0.07 3.77 Argentina peso (interbank) 14.1875 0.84 -9.28 (Reporting by Silvio Cascione, additional reporting by Anna Yukhananov in Mexico City; Editing by Alan Crosby; Editing by Meredith Mazzilli)
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