January 16, 2019 / 9:53 PM / a month ago

EMERGING MARKETS-Latin American stocks hover near eight-month highs

 (Recasts throughout, updates prices)
    By Susan Mathew
    Jan 16 (Reuters) - Latin American shares hovered near
eight-month highs on Wednesday, with Mexican shares touching the
highest in a week, in line with a rise in major world stock
indexes.
    The MSCI index of Latin American shares
climbed 0.3 percent, staying near the high reached on Monday
which was the strongest since May, taking heart from U.S. stocks
which were bolstered by strong bank earnings.  
    Mexico's IPC stock index rose 0.5 percent, while
Brazil shares reversed losses from earlier in the
session as gains in material and consumer stocks helped it close
higher.
    Argentine equities touched a more than three month
high, rising after three days. In Chile, both stocks
 and the currency rose sharply as copper, its
main export, closed 0.8 percent higher on Wednesday. 
    The Chilean peso finished at a six week high in its longest
winning streak ever of fourteen straight sessions of gains.
    Among other currencies, Brazil's real and the
Argentine peso weakened, while most other currencies
firmed against the dollar.
    The greenback stayed steady after UK Prime Minister Theresa
May's government won a confidence vote, clearing the way for an
attempt to forge a consensus among lawmakers on a Brexit divorce
agreement.
    The real weakened half a percent for a second session
after four weeks of gains that were driven by hopes of the new
government passing much needed pension reforms.
    "The question still remains, however, as to whether the
reform will succeed through Parliament. In any case, the road
could become bumpy and put the BRL under devaluation pressure
every now and then in the coming months," said You-Na Park, an
analyst with Commerzbank in a note.
    But, she remains optimistic on the real as a majority of the
parties agree the reforms are urgently needed, and will pass it
eventually, which should be supportive for the currency.
    The Mexican peso firmed 0.5 percent to 18.9 per
dollar at 2120 GMT.
    "It is expected that the (peso) exchange rate will continue
to trade steadily around the level of 19.00 pesos per dollar, as
market participants wait for new economic indicators that signal
the state of global economic activity," analysts at Banco Base
said in a note.
    The Argentine peso posted its worst day in three
weeks.
    
    Key Latin American stock indexes and currencies at 2120 GMT:
        Stock indexes                 Latest    Daily %
                                                 change
 MSCI Emerging Markets                 1010.02      0.49
 MSCI LatAm                            2836.50      0.33
 Brazil Bovespa                       94393.07      0.36
 Mexico IPC                           43804.12      0.46
 Chile IPSA                            5419.07      0.84
                                                
 Argentina MerVal                     34048.02      1.45
 Colombia IGBC                        11656.46     -0.06
                                                        
           Currencies                 Latest    Daily %
                                                 change
 Brazil real                            3.7361     -0.07
 Mexico peso                           18.9082      0.42
 Chile peso                             668.55      0.96
 Colombia peso                          3115.6      0.76
 Peru sol                                3.331      0.06
 Argentina peso (interbank)            37.4800     -0.91
                                                
 


 (Reporting by Susan Mathew in Bengaluru; editing by Chris
Reese)
  
Nuestros Estándares:Los principios Thomson Reuters
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