August 18, 2017 / 5:09 PM / a year ago

EMERGING MARKETS-Brazil stocks up on Petrobras boost

    By Bruno Federowski
    SAO PAULO, Aug 18 (Reuters) - Brazilian stocks on Friday
rose near six-month highs after the government renewed tax
breaks on the oil industry, boosting shares of state-controlled
Petróleo Brasileiro SA.
    According to a statement published on the official gazette,
Brazil will extend the so-called Repetro tax regime, which sets
lower taxes for exports and imports of goods related to oil
production and research in the sector.
    Analysts at XP Investimentos brokerage said that the oil
industry would suffer greatly should those benefits not be
extended as the tax breaks account for roughly 50 percent of
    Preferred shares in Petrobras, as the oil giant is known,
rose 3.6 percent, their biggest daily gain in a month. Common
shares were up 2.6 percent.
    Shares in miner Vale SA added the most points to
Brazil's benchmark Bovespa stock index, tracking an
increase in China-listed iron ore futures.
    The Brazilian real strengthened 0.9 percent in a
technical correction following a 1 percent slump the day before.
Other Latin American currencies seesawed.
    Appetite for higher-risk emerging market assets has been
hurt in recent days as doubts that President Donald Trump can
deliver promised tax cuts and stimulus for the U.S. economy
    But many emerging market assets were still headed for solid
weekly gains.
    MSCI's emerging market index was on track to rise
1.5 percent on the week following strong gains early in the week
as geopolitical tensions between the United States and North
Korea eased.
    Key Latin American stock indexes and currencies at 1720 GMT:
 Stock indexes                     Latest        Daily     YTD
                                                   pct     pct
                                                change  change
 MSCI Emerging Markets               1,061.64    -0.16   23.32
 MSCI LatAm                          2,818.45     1.08   19.13
 Brazil Bovespa                     68,807.53     1.22   14.25
 Mexico S&P/BVM IPC                 51,098.89     0.21   11.95
 Chile IPSA                          5,113.54     0.05   23.18
 Chile IGPA                         25,529.15     0.07   23.13
 Argentina MerVal                   23,076.54     1.55   36.40
 Colombia IGBC                      10,890.97     0.23    7.53
 Venezuela IBC                     194,487.58     3.15  513.42
 Currencies                            Latest    Daily     YTD
                                                   pct     pct
                                                change  change
 Brazil real                           3.1491     0.91    3.18
 Mexico peso                          17.7145     0.71   17.10
 Chile peso                            645.52     0.14    3.90
 Colombia peso                       2,988.09    -0.07    0.45
 Peru sol                               3.241     0.00    5.34
 Argentina peso (interbank)           17.3000     0.40   -8.24
 Argentina peso (parallel)              18.25     0.55   -7.84
 (Reporting by Bruno Federowski)
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