EMERGING MARKETS-Commodities lift Brazil, Argentina shares; Peru extends gains
By Marcelo Teixeira SAO PAULO, April 12 (Reuters) - A combination of strong gains in some key commodities and political developments in Brazil and Peru helped to lift shares and currencies in Latin America on Tuesday. A congressional committee in Brazil recommended late on Monday the impeachment of President Dilma Rousseff on charges of breaking budget laws, opening the way for a full lower house vote expected to take place on Sunday. "The political scene is increasingly difficult for the government and the chance of impeachment is getting stronger," said Lerosa Investimentos in a note to clients. Investors believe a new government would improve prospects for the economy in Brazil. Shares of state-run companies such as Petroleo Brasileiro SA and Centrais Elétricas Brasileiras SA gained on the news, supported as well by the rise in oil prices after Russia and Saudi Arabia took another step towards an agreement for a production freeze. Petrobras gained more than 4 percent. Brazil's Vale, the world's largest iron ore exporter, gained as much as 5 percent as values for its flagship product also jumped on Tuesday. But Brazil's currency interrupted its extended gains after touching the highest mark against the dollar in eight months on Monday. "The currency gained a lot yesterday and today the central bank came to the market strongly," said Mário Battistel, from Fair brokerage. Brazil's central bank offered four times as much of so-called reverse currency swaps to the market on Tuesday morning, pushing the real again above the 3.50 mark against the dollar. In Argentina, state-run oil company YPF gained almost 4 percent. Peru's select stock index extended gains following election results over the weekend that put two pro-business candidates in a runoff for the country's presidency. The index, which gained almost 12 percent on Monday, was up around 1 percent on Tuesday. Peru's sol also continued to gain against the dollar, reaching 3.261. Key Latin American stock indexes and currencies: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 830,32 0,77 3,76 MSCI LatAm 2175,25 2 16,54 Brazil Bovespa 51402,16 2,47 18,57 Mexico IPC 44905,71 0,32 4,49 Chile IPSA 3931,71 0,21 6,83 Chile IGPA 19280,85 0,22 6,22 Argentina MerVal 12471,31 2,35 6,82 Colombia IGBC 10029,99 1,59 17,35 Venezuela IBC 15423,02 1,49 5,72 Currencies daily % YTD % change change Latest Brazil real 3,5307 -1,07 11,79 Mexico peso 17,4935 0,87 -1,51 Chile peso 673,2 0,94 5,42 Colombia peso 3024,81 0,95 4,78 Peru sol 3,268 0,37 4,47 Argentina peso (interbank) 14,5300 -0,03 -10,65 Argentina peso (parallel) 14,96 0,00 -4,61 (Additional reporting by Paula Arend Laier and Patricia Duarte; Editing by Diane Craft)
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