April 23, 2019 / 9:35 PM / a year ago

EMERGING MARKETS-Latam FX mostly weaker; Brazil boosted by pension optimism

 (Recasts throughout, updates prices)
    By Susan Mathew
    April 23 (Reuters) - Most Latin American currencies weakened
against a stronger dollar on Tuesday, but Brazil's real
rebounded from session losses and stocks in Sao Paulo jumped
after lawmakers reached a deal to advance a pension reform bill
seen as crucial to the economy.
    The real erased losses of up to 0.6 percent from
earlier in the session to close 0.4 percent higher, while the
Bovespa stock index posted its best day in three weeks,
up 1.4 percent on broad-based gains.
    After being postponed by a week, Brazil's government reached
a deal with lawmakers paving the way for a congressional
committee vote on the constitutionality of its key reform
proposal to overhaul Brazil's bloated pension system.

    Sacha Tihanyi, deputy head of emerging markets strategy at
TD Securities, highlighted two key risks facing the market if,
as expected, the bill clears Tuesday's hurdle.
    One would be the exact composition of the Special Committee
that would consider the proposal next, and second, the
possibility that the committee substantially waters down the
proposed reform.
    Failure by the government to validate market expectations
for a successful reform program would be extremely negative for
Brazil, he said.    
    Argentina's peso also firmed while other Latam
currencies weakened, with currencies of net crude exporters
Mexico and Colombia down despite a surge in oil
prices as the dollar climbed.
    Markets await U.S. economic growth data due later this week,
analysts at CI Banco said in a note.
    Chile's currency touched its lowest point in three
weeks during the session, tracking a dip in prices of its main
export, copper.
    Shares in Mexico and Chile slipped,
while those in Argentina and Colombia rose in
line with a move higher in world stocks as the S&P and Nasdaq
hit record closing highs.

    Key Latin American stock indexes and currencies at 2100 GMT:
    Stock indexes             Latest    Daily %
 MSCI Emerging Markets         1089.76      0.07
 MSCI LatAm                    2760.26      0.03
 Brazil Bovespa               95923.24      1.41
 Mexico IPC                   45148.32     -0.51
 Chile IPSA                    5217.07     -0.33
 Argentina MerVal             30926.73      0.46
 Colombia IGBC                13005.24      0.18
       Currencies             Latest    Daily %
 Brazil real                    3.9197     0.382
 Mexico peso                   18.9045     -0.42
 Chile peso                      667.7     -0.57
 Colombia peso                 3177.93     -0.76
 Peru sol                        3.311     -0.21
 Argentina peso                42.3800      0.33

 (Reporting by Susan Mathew in Bengaluru
Editing by Sonya Hepinstall)
Nuestros Estándares:Los principios Thomson Reuters
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