July 29, 2016 / 10:07 PM / 2 years ago

EMERGING MARKETS-Brazil real, Mexico peso jump on U.S. data

(New throughout, updates prices and market activity, changes
second byline, adds second dateline)
    By Bruno Federowski and Miguel Angel Gutierrez
    SAO PAULO/MEXICO CITY, July 29 (Reuters) - The Brazilian
real strengthened on Friday, closing 1.63 percent higher
against the dollar as the country's central bank refrained from
intervening to curtail a rally triggered by lower expectations
of U.S. rate increases this year.
    Brazil's central bank abstained from acting to weaken the
currency despite doing so almost daily in July.
    Also boosted by the U.S. data, the Mexico peso gained 0.69
percent to close at 18.76 pesos per dollar.
    The U.S. economy grew far less than expected in the second
quarter, leading many investors to roll back bets on a near-term
rate hike by the Federal Reserve. 
    Keeping U.S. rates lower for longer would maintain the
allure of high-yielding emerging market assets, lifting
currencies from Latin America. 
    Brazil's benchmark Bovespa stock index was up more
than 1 percent on Friday, driven by shares in Petrobras, which
rose after the state-controlled oil company sold off a $2.5
billion stake in an offshore exploration license. 
    The sale is the first in a $15 billion divestment program as
Petrobras seeks to cut debt and revive investor confidence amid
a sweeping graft scandal.
    In Mexico, the stock index fell 0.37 percent,
affected by a drop in shares of telecoms company America Movil,
which posted a 45 percent slump in second-quarter profit on
Thursday evening. 
    America Movil's share price hit its lowest in over
seven years during the session. 

    Key Latin American stock indexes and currencies at 2059 GMT:
 Stock indexes               Latest          Daily   YTD pct
                                               pct    change
 MSCI Emerging Markets            873.47     -0.23      9.99
 MSCI LatAm                     2,391.35       1.6     30.69
 Brazil Bovespa                57,308.21      1.13     32.20
 Mexico IPC                    46,660.67     -0.37      8.57
 Chile IPSA                     4,117.47     -0.53     11.88
 Chile IGPA                    20,368.48     -0.44     12.21
 Argentina MerVal              15,803.50      2.25     35.36
 Colombia IGBC                  9,662.30      -0.6     13.04
 Venezuela IBC                 12,965.94      4.64    -11.12
 Currencies                                  Daily   YTD pct
                                               pct    change
                                  Latest    change  
 Brazil real                      3.2423      1.63     21.73
 Mexico peso                     18.7600      0.69     -8.16
 Chile peso                        655.5      1.22      8.27
 Colombia peso                  3,066.93      0.69      3.34
 Peru sol                          3.351      0.00      1.88
 Argentina peso (interbank)      15.0000      0.28    -13.45
 Argentina peso (parallel)         15.42      0.65     -7.46
 (Reporting by Bruno Federowski and Paula Arend Laier in Sao
Paulo and Miguel Angel Gutierrez in Mexico City; Editing by
David Gregorio)
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