EMERGING MARKETS-Brazil stocks up after lawmakers OK budget deficit

miércoles 25 de mayo de 2016 16:45 GYT

(Updates with afternoon prices)
    By Bruno Federowski and Paula Arend Laier
    SAO PAULO, May 25 (Reuters) - Brazilian equities rose on
Wednesday after interim President Michel Temer's government
cleared its first major test in Congress, gaining permission to
post a record budget gap this year. 
    Many traders had feared Temer's two-week-old administration
could struggle to gather support for the bill after the
resignation of a high-ranking minister accused of plotting to
hamper a sweeping corruption probe. 
    "The honeymoon is over and Temer is taking his first steps
in Congress," said Jaime Ferreira, head trader at Intercam
brokerage in São Paulo.
    Some analysts argued, however, that the government could
still face problems passing its fiscal austerity measures. Temer
said on Tuesday he would seek a constitutional amendment to
limit increases in public spending. 
    The country's benchmark Bovespa stock index rose
0.51 percent on Wednesday.
    The move also tracked a rise on Wall Street and a
jump in crude prices , with shares of
state-controlled oil company Petrobras rising 1.64
    The U.S. government reported a larger-than-expected drop in
crude stocks for last week, but oil prices remained below $50 as
investors booked profits. 
    Other Latin American markets also tracked oil prices higher,
with the Mexican benchmark IPC index rising 0.47 percent.
    Key Latin American stock indexes and currencies at 2002 GMT:
 Stock indexes               Latest          Daily   YTD pct
                                               pct    change
 MSCI Emerging Markets            800.36      1.57     -0.77
 MSCI LatAm                     2,070.68      -0.3     13.51
 Brazil Bovespa                49,597.47      0.51     14.41
 Mexico IPC                    45,710.94      0.47      6.36
 Chile IPSA                     3,959.00      0.09      7.58
 Chile IGPA                    19,527.38      0.08      7.58
 Argentina MerVal              12,381.50     -0.74      6.05
 Colombia IGBC                  9,708.53     -0.74     13.59
 Venezuela IBC                 15,314.16      0.51      4.98
 Currencies                       Latest     Daily   YTD pct
                                               pct    change
 Brazil real                      3.5961      -0.6      9.76
 Mexico peso                     18.4615      0.10     -6.67
 Chile peso                        691.2      0.58      2.68
 Colombia peso                  3,059.85      0.09      3.58
 Peru sol                          3.339      0.21      2.25
 Argentina peso (interbank)      14.0400     -0.28     -7.53
 Argentina peso (parallel)         14.61      0.41     -2.33

 (Reporting by Bruno Federowski and Paula Arend Laier; Editing
by Paul Simao and Peter Cooney)