SAO PAULO, Nov 12 (Reuters) - Brazil’s currency strengthened on Wednesday amid market chatter that President Dilma Rousseff was strongly considering a market-friendly name for finance minister.
The MSCI Latin American stock index rose for the first session in three, led by Brazilian stocks, although Mexican shares fell their most in a week.
The Brazilian real erased the previous session’s losses after traders began to speculate that Rousseff is strongly considering Henrique Meirelles, a former central bank president and market favorite, for the finance minister post.
Her decision has been the market’s primary focus since she won re-election last month.
“The market is quite sensitive about any signal about economic policy for the coming years,” said Reginaldo Galhardo, head of currency trading at brokerage Treviso in Sao Paulo.
Brazil’s Bovespa stock index posted its biggest gain this month as investors picked up shares of banks and state-run enterprises, both of which have suffered in the past due to intervention by Rousseff’s government.
Mexico’s IPC stock index slid for the fifth straight day, led by a more than 2 percent drop in shares of heavily weighted telecommunications company America Movil.
The stock fell after AT&T’s chief executive officer said on Wednesday that the company did not need to acquire assets of America Movil to succeed in Mexico.
Chile’s IPSA stock index rose its most in more than a week, led by a gain of more than 3 percent gain in retailer Falabella’s shares.
The company said earnings rose about 6 percent in the third quarter. (Reporting by Bruno Federowski; Writing by Asher Levine; Editing by Lisa Von Ahn)