April 12, 2016 / 8:47 PM / 2 years ago

EMERGING MARKETS-Commodities lift Brazil, Argentina shares; Peru gains

(Updates prices, adds Mexico)
    By Marcelo Teixeira
    SAO PAULO, April 12 (Reuters) - A combination of strong
gains in some commodities and political developments in Brazil
and Peru helped to lift shares and currencies in Latin America
on Tuesday.
    A congressional committee in Brazil late on Monday
recommended the impeachment of President Dilma Rousseff on
charges of breaking budget laws, opening the way for a full
lower house vote expected to take place on Sunday. 
    "The political scene is increasingly difficult for the
government and the chance of impeachment is getting stronger,"
Lerosa Investimentos said in a note to clients.
    Investors believe a new government would improve prospects
for the economy in Brazil. Signs of change since the beginning
of the year have lifted Brazil's real currency by more than 11
percent, and the stock market by 20 percent.
    Shares of state-run companies such as Petroleo Brasileiro SA
 and Centrais Elétricas Brasileiras SA 
gained on the news about Rousseff, supported as well by the jump
in oil prices after Russia and Saudi Arabia took another step
towards an agreement for a production freeze. 
    Petrobras gained more than 4 percent. Brazil's Vale, the
world's largest iron ore exporter, gained as much as 5 percent
as values for its flagship product also jumped on Tuesday.
    But Brazil's currency interrupted its extended gains after
touching an eight-month high against the dollar on Monday, after
the central bank offered reverse currency swaps to the market on
Tuesday morning.
    In Argentina, the Merval stock index gained 4.2
percent, while Mexico's peso was also boosted by commodities,
rising as much as 1.1 percent in its biggest one-day jump since
    Peru's select stock index extended gains
following election results over the weekend that put two
pro-business candidates in a runoff for the presidency. The
index, which gained almost 12 percent on Monday, was up around 1
percent on Tuesday and was at a nine-month high.
    Peru's sol also continued to gain against the
dollar, reaching 3.2621.
    Key Latin American stock indexes and currencies at 2058 GMT:
 Stock indexes               Latest       Daily pct   YTD pct
                                             change    change
 MSCI Emerging Markets            832.60       1.04      3.76
 MSCI LatAm                     2,209.54       3.61     16.54
 Brazil Bovespa                52,107.77       3.87     20.20
 Mexico IPC                    45,091.81       0.74      4.92
 Chile IPSA                     3,953.68       0.77      7.43
 Chile IGPA                    19,374.29        0.7      6.74
 Argentina MerVal              12,653.72       3.85      8.38
 Colombia IGBC                 10,060.92        1.9     17.71
 Venezuela IBC                 15,262.81       0.44      4.62
 Currencies                       Latest  Daily pct   YTD pct
                                             change    change
 Brazil real                      3.4918       0.03     11.53
 Mexico peso                     17.4665       1.01     -1.37
 Chile peso                        673.2       0.93      5.14
 Colombia peso                     3,019       1.13      4.74
 Peru sol                         3.2621       0.55      4.45
 Argentina peso (interbank)      14.4550       0.48    -11.34
 Argentina peso (parallel)         14.96       0.00     -4.84
 (Additional reporting by Paula Arend Laier, Patricia Duarte and
Anna Yukhananov; Editing by Diane Craft and Grant McCool)
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