January 18, 2017 / 3:01 PM / a year ago

EMERGING MARKETS-Brazil stocks near 10-week high as Vale rallies

SAO PAULO, Jan 18 (Reuters) - Brazilian stocks held near a
10-week high on Wednesday as shares of miner Vale SA jumped on
hopes that the renewal of a shareholder agreement could improve
corporate governance.
    Local newspaper Valor Econômico reported that Vale's
controlling shareholders have discussed grouping the miner's
common and preferred shares as part of the renewal. 
    Analysts at Banco BTG Pactual SA said the changes to
corporate governance included in the revised accord could unlock
up to $18 billion in value. 
    Preferred shares in Vale rose as much as 4.6
percent to 29.89 reais, a more than three-year high. Common
shares rose 2.55 percent to 31.35 reais, narrowing
the discount between the two classes of stock to the smallest
since November.
    Shares of Bradespar SA, which holds a 21.2
percent stake in Vale's controlling shareholder Valepar SA, rose
5.8 percent, leading gains in Brazil's benchmark Bovespa stock
    The advance was somewhat offset by falling bank shares as
traders booked profits from recent gains. Shares of Banco
Bradesco SA slid from a 10-week high reached on
    Latin American currencies were mostly weaker ahead of a
speech by Federal Reserve Chair Janet Yellen later on Wednesday.
    Demand for high-yielding assets in the region has waned on
bets that the Fed could raise interest rates faster than
originally expected if U.S. President-elect Donald Trump stands
by his pledges of heavy spending and lower taxes.
    The Mexican peso, which has plunged due to Trump's
protectionist threats, weakened over 1 percent on Wednesday.
    Key Latin American stock indexes and currencies at 1430 GMT:
 Stock indexes                               daily %     YTD %
                                    Latest    change    change
 MSCI Emerging Markets               897.04     0.24      3.78
 MSCI LatAm                         2429.89    -0.41      4.24
 Brazil Bovespa                    64347.82    -0.01      6.84
 Chile IPSA                         4248.08      0.4      2.33
 Chile IGPA                        21164.01     0.36      2.07
 Argentina MerVal                  18886.84     0.05     11.64
 Venezuela IBC                     30346.12    -4.38     -4.29
 Currencies                                  daily %     YTD %
                                              change    change
 Brazil real                         3.2225    -0.34      0.83
 Mexico peso                        21.7400    -1.06     -4.58
 Chile peso                           659.4    -0.55      1.71
 Colombia peso                       2933.1    -0.53      2.33
 Peru sol                             3.354    -0.30      1.79
 Argentina peso (interbank)         15.9350    -0.16     -0.38
 Argentina peso (parallel)             16.8     0.06      0.12

 (Reporting by Bruno Federowski; Editing by Meredith Mazzilli)
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