December 8, 2016 / 11:57 PM / 2 years ago

EMERGING MARKETS-After tough run, Mexico shares jump, while Brazil stocks drop

(Updates prices)
    By Bruno Federowski
    SAO PAULO, Dec 8 (Reuters) - Brazil's Bovespa stock index
fell on Thursday, after two sessions of gains, while Mexican
stocks rose 1.65 percent, as investors snapped up shares that
had become attractively cheap after weeks of poor performance.
    Brazilian markets opened higher after the country's Supreme
Court overturned an injunction ordering the indicted head of the
Senate, Renan Calheiros, to step down, voting to allow him to
continue in the post but not in the presidential line of
    Calheiros' potential ouster had stoked concern about
possible delays in the approval of austerity measures. He said
on Thursday that the final vote on the government's key spending
limit bill will be held as planned next Tuesday. 
    But the gains were short-lived, and the Bovespa started
losing after the European Central Bank announced an extension of
its stimulus program, but at a slower intensity.
    The ECB said it would cut monthly asset purchases to 60
billion euros from the current 80 billion but extend the buys
until the end of 2017. Markets had expected purchases to stay at
80 billion but only for six more months. 
    The Bovespa ended the day down 1.2 percent. Shares
in iron ore giant Vale fell nearly 4 percent on
profit-taking, while shares in oil behemoth Petrobras 
weakened over 1 percent after a federal auditing court ordered a
freeze on the company's divestiture program late on Wednesday. 
    The real gained, however, as investors remained
optimistic after Wednesday's Supreme Court's decision. 
    The Mexican peso was flat. 
    Mexico's IPC stock index, which suffered its worst
November in over five years and fell last week amid the shock
election of Donald Trump in the United States, gained 1.65
percent, as traders jumped on relatively cheap assets.
    Shares in cement giant Cemex rose nearly 5
percent, while billionaire Carlos Slim's telecoms company
America Movil rose almost 3 percent.
    Chilean and Colombian markets did not open on Thursday due
to local holidays.

    Key Latin American stock indexes and currencies at 2238 GMT:
 Stock indexes                           daily %   YTD %
                                          change  change
 MSCI Emerging Markets           879.32     1.35   10.73
 MSCI LatAm                     2323.36     0.19   26.97
 Brazil Bovespa                60676.57     -1.2   39.97
 Mexico IPC                    46360.23     1.65    7.87
 Chile IPSA                     4224.67     0.24   14.79
 Chile IGPA                    21075.86     0.22   16.11
 Argentina MerVal              17196.77    -0.22   47.29
 Colombia IGBC                  9798.00    -0.18   14.63
 Venezuela IBC                 36530.48     1.16  150.41
 Currencies                              daily %   YTD %
                                          change  change
 Brazil real                     3.3824     0.31   14.57
 Mexico peso                    20.3415    -0.01  -15.30
 Chile peso                      654.82     0.00    8.38
 Colombia peso                     3003    -0.02    5.54
 Peru sol                         3.403     0.00    0.32
 Argentina peso (interbank)     15.9950    -0.50  -18.83
 Argentina peso (parallel)        16.25    -0.43  -12.18
 (Reporting by Bruno Federowski; Editing by Frances Kerry and
James Dalgleish)
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