September 20, 2016 / 11:27 PM / 2 years ago

EMERGING MARKETS-Brazil shares up on Petrobras investment plan

(Updates table)
    By Bruno Federowski
    SAO PAULO, Sept 20 (Reuters) - Boosted by expectations that
the U.S. Federal Reserve would not raise interest rates, key
Latin American stocks rose on Tuesday, even as Mexico's currency
sank to a record low. 
     Pressured by a tight U.S. presidential race, Mexico's peso
 reached 19.91 before closing at 19.81 per greenback, a
decrease of 0.66 compared to Monday. The IPC stock index 
rose 1.03 percent.
    In Brazil, shares rose on Tuesday after Petrobras slashed
its planned investment by 25 percent, pleasing traders concerned
with the indebted state-controlled oil company's health.
    Petróleo Brasileiro SA  is seeking to
reduce the largest debt burden among global petroleum firms and
revive investor confidence battered by a corruption scandal.
    Brasil Plural Corretora analysts said the forecasts are
"attractive, but challenging," noting the market has shown
"goodwill" toward the company's new management. 
    Petrobras provided a sizeable boost to Brazil's benchmark
Bovespa stock index, but gains were limited by a sharp
drop in shares of Rumo Logística Operadora Multimodal SA
 and Metalurgica Gerdau SA.
    Most other Latin American markets also closed up ahead of
policy statements on Wednesday by the U.S. Federal Reserve and
the Bank of Japan.
    Credit Suisse analysts expect Japan's central bank to remain
on hold at least until the publication of its next outlook
report, in November, while the Fed was expected to again cut
forecasts for how high interest rates would need to go in an
economy where output, productivity and inflation are growing at
a slower pace than in past decades. 
    Key Latin American stocks and currencies at 2000 GMT:
 Stock indexes                             daily %      YTD %
                                Latest      change     change
 MSCI Emerging Markets           898.87       0.13      13.04
 MSCI LatAm                     2334.49       0.47      26.98
 Brazil Bovespa                57689.45       0.59      33.08
 Mexico IPC                    46341.33       1.03       7.83
 Chile IPSA                     4063.01       0.36      10.40
 Chile IGPA                    20221.68       0.33      11.41
 Argentina MerVal              15984.67      -0.03      36.91
 Colombia IGBC                  9856.51      -1.09      15.32
 Venezuela IBC                 12246.37       0.78     -16.05
 Currencies                                daily %      YTD %
                                            change     change
 Brazil real                     3.2595       0.00      21.09
 Mexico peso                    19.8365      -0.76     -13.14
 Chile peso                       670.8       0.85       5.80
 Colombia peso                  2914.52       0.05       8.74
 Peru sol                         3.389      -0.03       0.74
 Argentina peso (interbank)     15.1400       0.10     -14.25
 Argentina peso (parallel)        15.71      -0.70      -9.17

 (Reporting by Bruno Federowski, editing by G Crosse)
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