December 6, 2016 / 11:02 PM / 2 years ago

EMERGING MARKETS-Latin America stocks rise, Mexico peso hits 2-week high

By Bruno Federowski
    SAO PAULO, Dec 6 (Reuters) - Latin American stocks mostly
rose on Tuesday, while Mexico's peso hit a two-week high the day
after a deep-water Gulf oil auction that was widely seen as
    Brazil's benchmark Bovespa stock index rallied more
than 2 percent, supported by a jump in the shares of JBS SA
, the world's biggest beef exporter.
    Shares soared more than 19 percent, their biggest daily gain
in seven months, after JBS said it would take its international
businesses public in an initial public offering in the United
    Analysts with Credit Suisse Securities estimated the
reorganization could boost share prices by 30 percent compared
to Monday's close.
    Mexico's peso rose more than 1 percent against the
U.S. dollar, a day after the country auctioned eight out of 10
deep-water oil and gas blocks in the Gulf of Mexico, raising
expectations of capital inflows. 
    "The increase in foreign direct investment is welcome in a
context of the current account deficit and a significant
reliance of bilateral trade with the U.S. and remittances from
abroad," strategists with BNP Paribas wrote in a client note.  
    In Brazil, the real appreciated more than 0.3 percent
after the country's Senate defied a Supreme Court ruling to oust
the chamber's president and as measures to cap government
spending hung in the balance. 
    Key Latin American stock indexes at 2200 GMT:
 Stock indexes                            daily %    YTD %
                                           change   change
 MSCI Emerging Markets            861.49     0.88     8.48
 MSCI LatAm                      2293.50     1.68    25.34
 Brazil Bovespa                 61088.25      2.1    40.92
 Mexico IPC                     45103.22     0.37     4.95
 Chile IPSA                      4214.38     0.19    14.51
 Chile IGPA                     21029.71     0.13    15.86
 Argentina MerVal               17235.21     1.38    47.62
 Colombia IGBC                   9815.64      0.4    14.84
 Venezuela IBC                  36430.04    -0.89   149.72
 (Reporting by Bruno Federowski; Additional reporting by Miguel
Angel Gutierrez and Flavia Bohone; Editing by Daniel Flynn and
James Dalgleish)
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