February 25, 2019 / 3:18 PM / a month ago

EMERGING MARKETS-Latam stocks, FX rise as Trump delays China import tariff hike

    By Aaron Saldanha
    Feb 25 (Reuters) - Stocks in Latin America rose on Monday
and the region's currencies firmed against a soft dollar after
U.S. President Donald Trump fueled appetite for risky assets
globally by delaying an increase in tariffs on U.S. imports from
China.
    The decision, though not unexpected, heightened hopes there
will be a deal struck to end the bruising trade war between the 
world's top two economies, which has had a knock-on effect on
emerging markets.
    "EM rallying strongly even though a postponement of the
tariffs and an eventual trade deal is widely expected," Citi
Research Head of Emerging Market strategy Dirk Willer and
Emerging Markets FX Strategist Kenneth Lam wrote in a note.
    "We are still long EM, but would expect some profit taking
when the deal is inked." 
    MSCI's index of emerging market stocks was up 0.9
percent, set for a sixth straight day of gains, its longest
winning streak since May last year. The benchmark is trading
about 13 percent higher from a late December low.
    Stocks in index heavyweight China, a key
destination for Latin American resources exports, posted their
biggest single-day gains in more than three and a half years.
   
    Brazilian stocks edged up 0.2 percent, as gains
across most sectors were tempered by losses incurred by energy
shares.
    Iron ore mining giant Vale SA rose 1.3 percent,
building on Friday's 3.6 percent gain.
    State-run oil firm Petroleo Brasileiro SA, which
was weighed down by sliding oil prices, fell 1 percent.

    Brazil's oil regulator said it started investigating
Petrobras, whose preferred shares were down 0.9
percent on Monday, over an oil leak from an offshore platform
over the weekend.
    Planemaker Embraer SA slipped 0.6 percent after a
judge issued an injunction on Friday to block a shareholder
meeting regarding a tie-up with larger U.S. peer Boeing Co
.
    The Brazilian firm on Monday said it would take "appropriate
measures" to overturn the decision.
    Mexico's peso, considered by many to be a weather
vane of trade sentiment, firmed about half a percent. The
currency's trading volumes reached about 160 percent of their
average volume over the last week, Refinitiv Eikon data showed. 
    Chile's peso rose 0.5 percent, following rising
prices of copper, the country's key export.    
    Shares in Chile hit a five-month peak and were
trading up 0.4 percent, aided by a strong showing among
materials stocks. 
    Argentine stocks were up 1.2 percent, taking them to
what would be their highest closing level in a week if the gains
hold. The local peso was about 0.9 percent firmer.
            
    Key Latin American stock indexes and currencies at 1430 GMT
    
 Stock indexes                                         daily %
                                           Latest       change
 MSCI Emerging Markets                       1068.43      0.92
 MSCI LatAm                                  2917.23      0.54
 Brazil Bovespa                             98055.33      0.17
 Mexico IPC                                        -         -
 Chile IPSA                                  5505.80       0.4
 Argentina MerVal                           37089.51      1.21
 Colombia IGBC                                     -         -
                                                              
 Currencies                                            daily %
                                                        change
                                              Latest  
 Brazil real                                  3.7240      0.45
 Mexico peso                                 19.0661      0.37
 Chile peso                                    648.5      0.42
 Colombia peso                               3094.51      0.39
 Peru sol                                      3.306      0.00
 Argentina peso (interbank)                  38.9200      0.72
                                                      
 
 (Reporting by Aaron Saldanha in Bengaluru; Editing by Andrea
Ricci)
  
Nuestros Estándares:Los principios Thomson Reuters
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