April 27, 2016 / 4:36 PM / 2 years ago

EMERGING MARKETS-Brazil stocks outperform Latam as banks, state-run firms gain

BRASILIA, April 27 (Reuters) - Brazilian stocks rose nearly
2 percent on Wednesday as growing market optimism about an
expected government change boosted shares of banks and state-run
    Brazil's currency, the real, and other exchange rates
across Latin America were little changed though, as investors
awaited an upcoming interest rate decision in the United States.
    Brazil's Bovespa stock index outperformed the
broader MSCI Latin American stock index on signs
Vice President Michel Temer would implement a more
market-friendly economic policy if he replaces President Dilma
Rousseff in coming weeks, as expected.
    Rousseff is widely expected to be suspended from office and
be put on trial for allegedly breaking budget laws. Sources
close to Temer told Reuters he would replace the board of the
central bank and that of state-run lenders as part of a drive to
regain investors' confidence. 
    Shares of state-run oil producer Petroleo Brasileiro SA
 rose more than 3 percent to an eight-month high,
while shares of state-run lender Banco do Brasil SA 
gained more than 2 percent.
    Quarterly earnings reports also drove up shares in Brazil
and Mexico. Shares of Wal-Mart's Mexican subsidiary 
gained 7 percent after net income rose 30 percent in the first
quarter, above forecasts, while shares of Banco Santander Brasil
SA gained more than 4 percent after increased loan
renegotiations helped it beat profit expectations. 
    Shares of Fibria SA, the world's largest producer
of eucalyptus pulp, bucket the trend and fell 3 percent. A
stronger dollar helped the company return to profit in the first
quarter, but an increase in costs and a decline in volumes
disappointed investors, according to a research note by BTG
    Key Latin American stock indexes and currencies at 1616 GMT:
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets            841.77      -0.1      6.11
 MSCI LatAm                      2251.58      1.13     21.67
 Brazil Bovespa                 53933.17       1.6     24.41
 Mexico IPC                     45792.05      0.83      6.55
 Chile IPSA                      3960.98      0.21      7.63
 Chile IGPA                     19480.24      0.17      7.32
 Argentina MerVal               13631.23      0.06     16.75
 Colombia IGBC                  10107.53      0.05     18.25
 Venezuela IBC                  15683.22         0      7.51
 Currencies                                daily %     YTD %
                                            change    change
 Brazil real                      3.5393     -0.58     11.52
 Mexico peso                     17.3840     -0.10     -0.89
 Chile peso                        667.1      0.13      6.39
 Colombia peso                   2949.15      0.16      7.46
 Peru sol                         3.2912     -0.25      3.73
 Argentina peso (interbank)      14.2200      0.62     -8.70
 Argentina peso (parallel)         14.71      0.54     -2.99
 (Reporting by Silvio Cascione; Editing by Meredith Mazzilli)
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