August 14, 2018 / 3:08 PM / 2 months ago

EMERGING MARKETS-LatAm equities rebound as lira fears fade

    SAO PAULO, Aug 14 (Reuters) - Latin American equities
rebounded moderately on Tuesday, as Turkey's lira currency
pulled out of a nosedive, reversing a broader emerging markets
selloff for the time being.
    After a three-week drubbing, the lira rallied 5
percent as the country's finance minister sought to reassure
investors concerned by President Tayyip Erdogan's resistance to
interest rate hikes and his general control of the economy.

    Brazil's benchmark Bovespa index climbed 0.71
percent in morning trade, while Mexico's IPC was up 0.6
percent. 
    Though gains were relatively well distributed, there were
signs traders were making positive bets on a slew of companies
set to report second quarter results later in the day, including
food processor JBS SA and education firms Kroton
Educacional SA and Estacio Participacoes SA
, which all climbed more than 2 percent.
    Travel operator CVC Brasil Operadora e Agencia de Viagens SA
 climbed 4 percent after announcing a deal to buy
rival Esferatur for 245 million reais ($63.3 million).

    Holding company Bradespar SA, a major shareholder
in iron ore miner Vale SA, was the biggest winner,
climbing 5.5 percent after traders responded well to the firm's
second quarter results.
    "Considering a new dividend policy and expectations of
improving results at Vale in the coming quarters, we are still
recommending the stock," analysts at Mirae Asset Management
wrote in a note.
    Currency markets were mixed in the region, with currencies
in Brazil and Mexico both ticking up alongside
the lira, but currencies in Colombia, Peru, and
copper-dependent Chile all falling.
    By far the biggest mover was the Argentine peso,
which climbed some 2.22 percent after that country's central
bank took a raft of measures to stabilize the volatile currency
on Monday, including increasing the benchmark interest rate to
45 percent from 40 percent previously.
    
Key Latin American stock indexes and currencies at 1428 GMT:   
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1041.79     -0.14     -9.94
                                                  
 MSCI LatAm                    2575.62      0.76     -9.62
                                                  
 Brazil Bovespa               78045.89      0.71      2.15
                                                  
 Chile IGPA                26578.52     0.43      
                                                  
 Mexico IPC                   49061.00       0.6     -0.59
                                                  
 Argentina MerVal             26193.32       0.5    -12.88
                                                  
 Colombia IGBC                12022.65      0.24      5.73
                                                  
 Venezuela IBC               120804.77      2.97   9463.85
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.8803      0.40    -14.61
                                                  
 Mexico peso                   19.0040      0.56      3.66
                                                  
 Chile peso                      662.2     -0.32     -7.18
                                                  
 Colombia peso                 3004.48     -0.12     -0.75
 Peru sol                        3.289     -0.06     -1.58
                                                  
 Argentina peso                29.3200      2.22    -36.56
 (interbank)                                      
                                                  
 Argentina peso                   29.6     -2.03    -35.03
 (parallel)                                       
                                                  
 

 (Reporting by Gram Slattery and Paula Arend Laier; Editing by
Bernadette Baum)
  
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