May 15, 2017 / 4:25 PM / a year ago

EMERGING MARKETS-Latam markets rise as commodities track oil higher

    By Bruno Federowski
    SAO PAULO, May 15 (Reuters) - Latin American currencies and
stocks posted gains on Monday as talks of extended production
cuts lifted crude oil futures, triggering a rally across
commodity markets.
    Oil jumped more than 2 percent to the highest in more than
three weeks after officials from Saudi Arabia and Russia said
supply cuts need to last into 2018.
    Currencies of oil exporters in the region, Mexico
and Colombia, were the biggest gainers. Other currencies
in the region also strengthened, tracking increases in prices of
raw materials including iron ore, copper and aluminum.
    Demand for high-yielding emerging market currencies has
picked up following mixed U.S. economic data on Friday, which
cooled expectations of a rapid pace of Federal Reserve interest
rate increases in the coming months.
    "The setback clouds the near-term outlook," analysts at
Brown Brothers Harriman wrote in a note to clients.
    MSCI's 23-country emerging market stock index
touched its highest since May 2015, on track for a sixth
straight session of gains for the first time since August.
    Shares of state-controlled oil company Petróleo Brasileiro
SA, or Petrobras, added the most to Brazil's
benchmark Bovespa stock index. Miners and steelmakers,
such as Usinas Siderúrgicas de Minas Gerais SA and
Gerdau SA, ranked among the biggest gainers.
    A drop in shares of food processor BRF SA,
however, curbed the market's advance as traders booked profits
on the stock after it closed near a three-month high.
    BRF reported a net loss last quarter, but some analysts said
the figures may have bottomed out as domestic performance
surpassed analysts' expectations.
    Key Latin American stock indexes and currencies at 1600 GMT:
 Stock indexes                Latest       Daily  YTD pct
                                             pct   change
 MSCI Emerging Markets         1,011.58     0.92    16.25
 MSCI LatAm                    2,747.77     1.11    16.11
 Brazil Bovespa               68,328.11     0.16    13.45
 Mexico IPC                   49,711.23     0.58     8.91
 Chile IPSA                    4,865.20     0.27    17.19
 Chile IGPA                   24,393.32     0.25    17.65
 Argentina MerVal             21,581.91     0.36    27.57
 Colombia IGBC                10,880.48     1.15     7.43
 Venezuela IBC                61,403.47     1.23    93.67
 Currencies                      Latest    Daily  YTD pct
                                             pct   change
 Brazil real                     3.1050     0.59     4.64
 Mexico peso                    18.6625     0.80    11.15
 Chile peso                      667.62     0.54     0.46
 Colombia peso                    2,885     1.21     4.04
 Peru sol                         3.262     0.21     4.66
 Argentina peso (interbank)     15.5050    -0.42     2.39
 Argentina peso (parallel)        15.91     0.13     5.72

 (Reporting by Bruno Federowski)
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