EMERGING MARKETS-Brazil shares up on Petrobras investment plan
By Bruno Federowski SAO PAULO, Sept 20 (Reuters) - Brazilian shares rose on Tuesday after Petrobras slashed its planned investment by 25 percent, pleasing traders concerned with the indebted state-controlled oil company's health. Petróleo Brasileiro SA is seeking to reduce the largest debt burden among global petroleum firms and revive investor confidence battered by a corruption scandal. Brasil Plural Corretora analysts said the forecasts are "attractive, but challenging," noting the market has shown "goodwill" toward the company's new management. Petrobras provided the biggest boost to Brazil's benchmark Bovespa stock index, but gains were limited by a sharp drop in shares of Rumo Logística Operadora Multimodal SA . Prosecutors demanded the cancellation of Rumo's right to operate railways in the country's largest port of Santos, alleging that the companies in the Portofer consortium formed a cartel. Other Latin American markets seesawed ahead of policy statements by the U.S. Federal Reserve and the Bank of Japan on Wednesday. Credit Suisse analysts expect Japan's central bank to remain on hold at least until the publication of its next outlook report, in November. But the Fed should strike a hawkish tone following this week's meeting despite a recent bout of mixed economic figures, they added. Mexico's peso hit a new record low at 19.85 per dollar, weakening for the ninth session in the last ten. Key Latin American stock indexes and currencies at 1600 GMT: Stock indexes Latest Daily YTD pct pct change change MSCI Emerging Markets 899.10 0.16 13.04 MSCI LatAm 2,335.87 0.53 26.98 Brazil Bovespa 57,785.94 0.76 33.30 Mexico IPC 46,268.58 0.87 7.66 Chile IPSA 4,045.09 -0.08 9.91 Chile IGPA 20,145.58 -0.04 10.99 Argentina MerVal 16,095.80 0.65 37.86 Colombia IGBC 9,880.12 -0.86 15.59 Venezuela IBC 12,064.88 -0.71 -17.30 Currencies Latest Daily YTD pct pct change change Brazil real 3.2577 0.59 21.16 Mexico peso 19.8285 -0.72 -13.10 Chile peso 672.2 0.64 5.58 Colombia peso 2,907.01 0.31 9.02 Peru sol 3.385 0.09 0.86 Argentina peso (interbank) 15.1600 -0.03 -14.36 Argentina peso (parallel) 15.59 0.06 -8.47 (Reporting by Bruno Federowski, editing by G Crosse)
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