August 16, 2018 / 3:14 PM / a month ago

EMERGING MARKETS-LatAm currencies rebound on U.S.-China talks, lira recovery

    SAO PAULO, Aug 16 (Reuters) - Latin American currencies
bounced back on Thursday as traders were relieved by news China
would hold trade talks with the United States this month while
Turkey's lira currency continued to rebound.
    China's Ministry of Commerce said late on Wednesday that a
delegation led by Vice Commerce Minister Wang Shouwen would
travel to the United States this month at the invitation of the
U.S. government. While the talks are relatively low-level, they
would end what has been a lull in communication between the two
sides.
    "The investors' take is positive for now given that it could
potentially represent the end of tariffs between the world's two
largest economies in return for agreements that please the
U.S.," Sao Paulo brokerage H.Commcor wrote in a note.
    Meanwhile, the Turkish lira was trading at
about 5.72 to the dollar, a marked recovery after hitting almost
seven to the dollar on Monday, as Turkish Finance Minister Berat
Albayrak assured thousands of investors and economists on a
Thursday conference call that the nation would emerge stronger
from the currency crisis.
    Brazil's real, and the Mexican and Argentine
peso rose between 0.6 and 0.9 percent in morning
trade. The Colombian peso was the big gainer, climbing
1.08 percent.
    Latin American equities were generally mixed, but mostly in
the black.
    Brazil's benchmark Bovespa rose 0.44 percent thanks
in part to positive corporate news that affected heavily
weighted stocks.
    Common and preferred shares of state utility Centrais
Eletricas Brasileiras SA, known as Eletrobras,
climbed 7.3 percent and 5.6 percent, respectively, making them
the Bovespa's largest gainers. The company's chief executive
said he was upbeat about the prospect of an auction of four
distribution units going ahead in late August as planned.
    Shares of Embraer SA gained 3.5 percent after
analysts at Morgan Stanley recommended ADRs of the aircraft
maker, saying the risk-reward balance had become attractive
because of the company's planned tie-up with Boeing Co.

    Mexico's benchmark IPC was off 0.12 percent, with
heavily weighted cement company Cemex SAB de CV
dragging down the index as a whole after HSBC downgraded the
stock.
    
Key Latin American stock indexes and currencies at 1435 GMT:  
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1024.32      0.09    -11.66
                                                  
 MSCI LatAm                    2555.87      1.43     -10.9
                                                  
 Brazil Bovespa               77416.94      0.44      1.33
                                                  
 Mexico IPC                   48499.95     -0.12     -1.73
                                                  
 Argentina MerVal             27190.88      0.68     -9.56
                                                  
 Colombia IGBC                11998.73      0.44      5.52
                                                  
 Venezuela IBC               182454.02     13.55  14344.48
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.8749      0.63    -14.49
                                                  
 Mexico peso                   18.9975      0.78      3.69
                                                  
 Chile peso                     663.85     -0.08     -7.41
                                                  
 Colombia peso                  3014,5      1.08     -1.08
 Peru sol                         3.31      0.21     -2.21
                                                  
 Argentina peso                29.7500      0.84    -37.48
 (interbank)                                      
                                                  
 Argentina peso                   29.5      1.02    -34.81
 (parallel)                                       
                                                  
 
    
    

 (Reporting by Gram Slattery and Patricia Duarte; Additional
reporting by Paula Arend Laier)
  
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