August 13, 2018 / 9:11 PM / a month ago

EMERGING MARKETS-Argentina's peso hits new low; LatAm stocks rebound

 (Updates prices, adds details on regional stocks)
    SAO PAULO/BUENOS AIRES, Aug 13 (Reuters) - Argentina's peso
hit an all-time low on Monday as Latin American currencies sank
amid a broader sell-off in emerging markets that have been
rattled by the Turkish lira's plunge.
    Latin American stock markets rebounded from recent losses as
investors thought the damage to local stocks had gone too far,
with Mexico and Brazil's main stock indexes bouncing back from
steep declines last week.  
    Turkey's lira pulled back from a record low of
7.24 to the dollar on Monday after the country's central bank
pledged to provide liquidity. Concerns about Turkey snowballed
into a market panic last week.
    The biggest loser was Argentina's peso currency,
which fell 2.4 percent to close at a record low 29.97 per
dollar, pressured by a corruption scandal that could damage the
country's construction sector and as Turkey's financial crisis
unnerved investors in emerging markets globally.
    "With the evolution of the Turkey situation, the start of
the week for Argentine assets has been laid out, with corruption
scandals involving businessmen and political officials adding
on" to the lira's slide, consultancy SBS wrote in a note to
clients.
    Mexico's peso, which tumbled more than 2.4
percent in intraday trade to a more than one-month low, pared
losses to end the day about 1 percent weaker against the dollar.
    Colombia's peso ended the session down about 2
percent to close at its weakest since December. 
    Brazil's benchmark Bovespa index rose about 1.3
percent as education company Kroton Educacional SA
jumped 7 percent and Companhia Siderurgica Nacional
rose 4.7 percent.
    Traders said they saw a buying opportunity after the index
fell over 5 percent last week.
    Mexico's S&P/BMV IPC index rose 0.79 percent,
bouncing back from its close on Friday at its lowest since early
July, helped by a more than 2 percent gain in shares of Wal-Mart
de Mexico.
    
Key Latin American stock indexes and currencies at 20.25 GMT:   
    
 Stock indexes                              daily %  YTD %
                                            change   change
                                  Latest             
 MSCI Emerging Markets              1043.3     -1.8    -9.94
 MSCI LatAm                         2556.2    -0.34    -9.62
 Brazil Bovespa                   77496.45     1.28     1.43
 Mexico IPC                       48767.02     0.79    -1.19
 Argentina MerVal                 26117.25    -2.75   -13.13
 Colombia IGBC                    11994.22    -0.25     5.48
 Venezuela IBC                    117318.2     4.96  9187.83
                                                            
 Currencies                                 daily %  YTD %
                                            change   change
                                                     
                                  Latest             
 Brazil real                        3.8959    -0.86   -14.95
 Mexico peso                        19.122    -1.15     3.02
                                                     
 Chile peso                          660.1    -1.03    -6.89
 Colombia peso                     3000.85    -1.96    -0.63
 Peru sol                            3.287    -0.21    -1.52
 Argentina peso (interbank)          29.92    -2.24   -37.83
                                                     
 Argentina peso (parallel)            29.6    -2.03   -35.03
                                                     
 
 (Reporting by Gram Slattery and Walter Bianchi; Additional
reporting by Paula Arend Laier and Michael O'Boyle
Editing by James Dalgleish)
  
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