EMERGING MARKETS-Brazil markets rise as impeachment goes back on track
BRASILIA May 10 (Reuters) - Brazilian stocks and the real jumped on Tuesday as impeachment proceedings against leftist President Dilma Rousseff got back on track, fueling optimism that a new pro-market administration could take over on Thursday.
Brazil's benchmark Bovespa stock index rose more than 4 percent, driven up by steelmaker Usinas and insurer Qualicorp, which both soared over 9 percent.
Brazil outperformed other equity markets in the region and drove up the broader MSCI Latin American stock index , rising 4 percent, despite Rousseff's last-ditch attempt to stay in office through the courts.
On Tuesday, Attorney General Eduardo Cardozo, the government's top lawyer, asked the Supreme Court to annul impeachment proceedings arguing they were politically motivated and had no legal basis.
But the leftist leader appeared resigned to leave the presidency; in her office, aides had packed her papers and cleared the shelves.
The Brazilian real gained more than 1.5 percent to 3.4666/dollar, below the 3.5 per greenback mark that many traders see as a threshold for central bank intervention. The bank has not intervened to curb currency gains through reverse swaps since last Tuesday.
The speaker of the lower house of Brazil's Congress withdrew early on Tuesday his controversial decision to annul an impeachment vote against Rousseff. The Senate will vote on Wednesday whether to put her on trial for breaking budget laws.
If, as is widely expected, a simple majority agrees to hold the trial, Rousseff will be automatically suspended from office for up to six months and Vice President Michel Temer will take over as president.
Elsewhere in Latin America, the Mexican peso rose 1.21 percent, its best showing in nearly two months, as crude prices jumped over 2 percent on supply disruptions in Canada. (Reporting by Silvio Cascione; Editing by Cynthia Osterman and Leslie Adler)
© Thomson Reuters 2016 All rights reserved.