October 25, 2018 / 9:08 PM / 20 days ago

EMERGING MARKETS-Brazil, Mexico lead Latam currencies and stocks higher

    By Aaron Saldanha
    Oct 25 (Reuters) - Latin American stocks and currencies
gained ground on Thursday, with riskier assets coming back into
favor after healthy corporate profit reports in the U.S. tech
sector fueled a global rebound in equities. 
    MSCI's indexes of Latin American equities
and currencies rose 1.2 percent and 0.2 percent,
respectively. The move tracked a wider rally in global stocks,
led by the biggest daily gain on Wall Street in six months,
which retraced about half of the previous day's massive losses.

    Against that backdrop, Brazil's real and Mexico's
peso gained about 0.7 percent.
    Gabriela Siller, director of financial and economic analysis
at Banco BASE, however, cautioned the peso was still at risk in
the run-up to a change in government at the end of next month. 
    Mexican President-elect Andres Manuel Lopez Obrador's
incoming administration is polling the public over whether to
complete a partially finished new airport for Mexico City, a
project he contends is over budget and rife with corruption.
Scrapping the project could hit the peso and Mexican government
bonds, analysts have said.
    Mexican stocks rose 0.7 percent, rebounding from a
four-month low. 
    Brazilian shares gained 1.23 percent, with the
market focusing on Sunday's presidential run-off election. Polls
show far-right candidate Jair Bolsonaro, favored by investors,
defeating leftist Fernando Haddad.
    "I think (Bolsonaro winning) will be positive for the entire
region. Brazil is almost half of Latin American GDP," said
Mauricio Oreng, senior Brazil strategist with Rabobank.
    Argentina's peso firmed 0.7 percent while local
stocks surged 4.4 percent, their biggest gain in nearly
two weeks.
    Colombian stocks rose 0.4 percent. Colombia's peso
, however, slipped fractionally to close at a two-year
low.    
    
    Key Latin American stock indexes and currencies at 0750 GMT
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets          948.99     -0.43    -17.73
                                                  
 MSCI LatAm                    2663.04      1.16     -6.92
                                                  
 Brazil Bovespa               84284.55      1.47     10.32
                                                  
 Mexico IPC                   46289.60      0.72     -6.21
                                                  
 Chile IPSA                    5141.67      0.02      0.02
                                                  
 Argentina MerVal             29341.87      4.21     -2.41
                                                  
 Colombia IGBC                12317.64      0.42      8.33
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.7045     -0.05    -10.56
                                                  
 Mexico peso                   19.4450      0.80      1.31
                                                  
 Chile peso                      687.6      0.17    -10.61
                                                  
 Colombia peso                    3169     -0.13     -5.90
 Peru sol                        3.344     -0.06     -3.20
                                                  
 Argentina peso                36.7600      1.06    -49.40
 (interbank)                                      
                                                  
 Argentina peso                   36.5      1.37    -47.32
 (parallel)                                       
                                                  
 

 (Reporting by Aaron Saldanha in Bengaluru, Editing by Rosalba
O'Brien)
  
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