August 3, 2017 / 9:36 PM / a year ago

EMERGING MARKETS-Brazil stocks fall on profit-taking, Mexico peso dips

 (Updates prices, adds details throughout)
    By Bruno Federowski
    SAO PAULO, Aug 3 (Reuters) - Brazilian stocks dipped on
Thursday as traders booked profits from a recent rally, though
increased confidence in prospects for structural reforms in
Latin America's largest economy helped to curb losses.
    Brazil's benchmark Bovespa stock index fell 0.54
percent at 66,777.13 points, a day after closing above the
67,000-point threshold on Wednesday for the first time since
    The move came after the lower house of Brazil's Congress
voted to reject a corruption charge against President Michel
Temer, saving him from facing a possible Supreme Court trial
that could have ousted him from office.
    Analysts at political risk consultancy Eurasia Group raised
the probability they attribute to Temer finishing his term to 70
percent from 60 percent, giving additional impetus to his
efforts to streamline Brazil's social security system.
    Temer's support was less than hoped for, however, raising
questions about how he will fare in future congressional votes
on more charges likely to be lodged against him.
    Shares of Suzano Papel e Celulose SA dipped 0.9
percent after jumping 11 percent over the previous two trading
days. The wood pulpmaker had reported a 79 percent drop in
second-quarter net profit.
    A Reuters poll found Brazilian and Mexican currencies will
weaken less than previously thought against the U.S. dollar
during the next 12 months as low interest rates abroad offset
political uncertainty at home.
    The Brazilian real ended the day up 0.2 percent,
after seesawing throughout the session, tracking many other
Latin American currencies as traders awaited the release of key
U.S. jobs data on Friday that could provide further hints over
the Federal Reserve's pace of interest rate hikes.
    The Mexican peso slipped 0.22 percent, with traders
remaining  cautious despite a Fitch Ratings decision to revise
the outlook on the country's sovereign rating to "stable" from
    Key Latin American stock indexes and currencies at 2059 GMT:
 Stock indexes               Latest          Daily   YTD pct
                                               pct    change
 MSCI Emerging Markets          1,064.05     -0.55     24.09
 MSCI LatAm                     2,784.56      0.15     18.79
 Brazil Bovespa                66,798.04     -0.54     10.91
 Mexico S&P/BMV IPC            51,303.45       0.2     12.40
 Chile IPSA                     5,066.34      -0.6     22.04
 Chile IGPA                    25,296.22      -0.6     22.00
 Argentina MerVal              21,763.79     -0.16     28.64
 Colombia IGBC                 10,935.76     -0.23      7.97
 Venezuela IBC                157,390.94      7.16    396.42
 Currencies                       Latest     Daily   YTD pct
                                               pct    change
 Brazil real                      3.1129      0.20      4.38
 Mexico peso                     17.8485     -0.22     16.22
 Chile peso                       648.12      0.49      3.48
 Colombia peso                   2,954.3      0.24      1.60
 Peru sol                          3.239      0.00      5.40
 Argentina peso (interbank)      17.6550     -0.37    -10.08
 Argentina peso (parallel)         18.13      0.72     -7.23
 (Reporting by Bruno Federowski, editing by G Crosse)
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