April 20, 2016 / 1:02 AM / 2 years ago

UPDATE 1-EMERGING MARKETS-Latam stocks, currencies up as crude recovers

(Updates with final prices)
    By Bruno Federowski
    SAO PAULO, April 19 (Reuters) - Latin American stocks and
currencies rose on Tuesday as a recovery in oil prices boosted
investor sentiment and fostered demand for risky assets.
    Crude prices  jumped on Tuesday after a worker
strike in Kuwait nearly halved output in the OPEC member nation.
The commodity had slumped on Monday after major oil producers
failed to reach an agreement to freeze production.
    Other basic products followed oil higher, boosting appetite
for stocks and currencies from commodities-rich Latin America.
    "The rebound in investor confidence appears to be driven by
the recovery in commodity prices, and crude oil in particular,"
strategists with Scotiabank wrote in a client note.
    Colombia's peso was the biggest gainer in the foreign
exchange market, jumping by more than 2 percent to its highest
level in five months. The country heavily depends on crude for
its exports and tax revenues.
    The Brazilian real also stood out after the central
bank stopped short of intervening to weaken the currency on
Tuesday, rising 1.92 percent to 3.5283 per dollar.
    The central bank has used reverse currency swaps to purchase
$29 billion worth of future dollars this month, which has
mitigated the effect of a currency rally prompted by investor
bets on the ouster of President Dilma Rousseff.
    After the lower house voted for her impeachment, the Senate
could ratify the decision by early May. A simple majority vote
would temporarily suspend the leftist President and put Vice
President Michel Temer in charge for as long as six months as
she faces a Senate trial.
    Shares of miner Vale SA rose on the back of
higher iron ore prices, lifting the benchmark Bovespa stock
index. Steelmakers Companhia Siderúrgica Nacional
 and Gerdau SA also advanced.
    Key Latin American stock indexes and currencies at 0045 GMT:
 Stock indexes                                daily %    YTD %
                                               change   change
 MSCI Emerging Markets                854.73     0.23     7.38
 MSCI LatAm                          2249.35     2.48    22.93
 Brazil Bovespa                     53710.05     1.54    23.90
 Mexico IPC                         45780.18     1.68     6.52
 Chile IPSA                          3989.69     0.62     8.41
 Chile IGPA                         19565.09     0.59     7.79
 Argentina MerVal                   13864.49     4.94    18.75
 Colombia IGBC                      10064.81     0.51    17.75
 Venezuela IBC                      16107.47    -0.15    10.41
 Currencies                                   daily %    YTD %
                                               change   change
 Mexico peso                           17.31     0.75    -0.46
 Chile peso                              661     0.38     7.37
 Colombia peso                          2898     2.42     9.36
 Peru sol                              3.249     0.67     5.08
 Argentina peso (interbank)           14.175    -0.35    -8.19
 (Additional reporting by Priscila Jordão; Editing by David
Gregorio and Jonathan Oatis)
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