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Mercados

EMERGING MARKETS-Brazil's real on a tear despite bleak outlook; Latam stocks gain

    * Brazil's real at near two-month high
    * Stocks rise as U.S., China services data brews optimism
    * Chile's peso falls; C.bank to scale back NDF intervention

 (Adds details, updates prices)
    By Susan Mathew and Ambar Warrick
    June 3 (Reuters) - Brazil's real surged on Wednesday after
industrial output in the country fell less than expected, while
Latin American stocks surged as major global economies were seen
recovering from the coronavirus' economic rout. 
    The real rose 2.4% to a near two-month high as
industrial production in Brazil fell 18.8% in April at its
fastest pace on record due to coronavirus containment measures,
but the drop was less than the estimated 29.2% slide.
 
    "It still highlights that GDP will fall dramatically in Q2 –
perhaps by 10%-12% quarter on quarter," said William Jackson,
chief emerging markets economist at Capital Economics.
    "It will also provide (the monetary policy committee) with
plenty of reason to cut interest rates further later this
month."
    The real has been one of the worst-performing emerging
market currencies this year, but a recent bout of risk appetite
has lifted it from record lows, even as pandemic and political
woes persist.
    Hopes of a broader economic recovery gained momentum as
readings showed business activity in the United States and China
beginning to recover. 
    Sao Paulo listed stocks extended gains to a fourth
session with financials serving as the biggest boost to the
Bovespa. 
    Most other Latam stocks also rose, tracking Wall Street
higher as the U.S. job market was also seen stabilizing.
    Chile's peso rose 1.3% after the country's central
bank said it would gradually scale back its foreign exchange
intervention program in the non-deliverable forward (NDF) market
amid lower peso volatility.
    One-month NDFs on the peso were trading at
770.31 to the dollar by 1902 GMT, compared with the spot rate of
770.30.
     The central bank also said it was speaking with its U.S.
and Chinese counterparts to broaden the country's foreign
exchange lines.
    Argentina's debt restructuring saga continued. A prominent
group of the country's creditors said its restructuring proposal
was in line with an International Monetary Fund assessment of
what would be sustainable and called for a deal to help the
country avoid a costly default. 
    
    Key Latin American stock indexes and currencies:
    
    Stock indexes             Latest      Daily % change
 MSCI Emerging Markets          986.88                2.01
                                        
 MSCI LatAm                    1972.30                 3.7
                                        
 Brazil Bovespa               92953.76                2.09
                                        
 Mexico IPC                   38113.68                1.74
                                        
 Chile IPSA                    3813.97                 1.7
                                        
 Argentina MerVal             43911.26               4.457
                                        
 Colombia COLCAP               1151.94                3.06 Currencies             Latest      Daily % change
 Brazil real                    5.0852                2.43
                                        
 Mexico peso                   21.7550                0.12
                                        
 Chile peso                      770.3                1.29
                                        
 Colombia peso                 3606.37                0.60
 Peru sol                       3.4017               -0.21
                                        
 Argentina peso                68.8000               -0.12
 (interbank)                            
                                        
 

 (Reporting by Susan Mathew in Bengaluru;
Editing by Alistair Bell and Lisa Shumaker)
  

Nuestros Estándares: Los principios Thomson Reuters.

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