May 20, 2019 / 8:13 PM / 3 months ago

EMERGING MARKETS-Latam stocks rise, Bovespa gains on reform hopes

 (Recasts throughout; updates prices)
    By Aaron Saldanha and Stefani Inouye
    May 20 (Reuters) - A Latin American stocks benchmark rose on
Monday, boosted by shares in index heavyweight Brazil, while
Latin American currencies were pressured by the dollar, with
risk appetite capped by fears of worsening U.S.-China trade
ties.
    Optimism regarding a proposal to reform Brazil's pension
system boosted investor sentiment, while a U.S. crackdown on
China's Huawei Technologies led to general weakness among a
range of global markets.
    MSCI's Latin American stocks index rose
0.6%, after hitting a 2019 low on Friday.
    Brazil's congressional pension reform bill coordinator said
his report on the proposed legislation will be ready by June 15,
or perhaps earlier.
    Sao Paulo-traded stocks tacked on 1.8%, aided by
gains across most sectors, lifting off Friday's near five-month
closing low. 
    Shares of state-run oil company Petroleo Brasileiro SA rose,
with common shares gaining 1.5% and preferred shares
 rising 2.5%. 
    Gol Linhas Aereas Inteligentes SA's preferred
shares rose 1.7%. U.S. hedge fund Elliott Management is opposing
a new plan by Azul SA, Gol's rival, to buy some routes
operated by financially troubled Avianca Brasil for $145
million, as per a legal document seen by Reuters. 
    Elliott is asking the court to dismiss Azul's proposal and
keep its own plan intact which, if approved by a judge, would
benefit Gol.
    Brazil's real marked time, while yields on local
10-year bonds fell 8 basis points to 9.02%.
    The currency's recent weakness has helped set the stage for
rising momentum in Brazil's soybean trade, according to
analysts, driven by a wave of Chinese demand.
    Mexican stocks held an even keel, supported by a 3.5%
gain in retailer Walmex. The peso firmed
0.4%.
    Stocks in Argentina licked their wounds after
Friday's 1.7% drop, trading 0.6% higher, while the peso
softened.      
    Colombia's peso weakened, while stocks
declined 0.8%.
    
    Latin American stock indexes and currencies at 1921 GMT
    
 Stock indexes                            daily
                                              %
                               Latest    change
 MSCI Emerging Markets           993.74   -0.27
                                         
 MSCI LatAm                     2542.14    0.59
                                         
 Brazil Bovespa                91607.15    1.79
 Mexico IPC                    43445.65       0
 Chile IPSA                     4926.10    0.01
                                         
 Argentina MerVal              33501.05    0.56
                                         
 Colombia IGBC                 12137.26   -0.82
                                         
                                               
 Currencies                               daily
                                              %
                                         change
                                 Latest  
 Brazil real                     4.1028   -0.07
                                         
 Mexico peso                    19.0800    0.44
                                         
 Chile peso                       696.1   -0.06
                                         
 Colombia peso                  3350.03   -0.90
 Peru sol                         3.347   -0.51
                                         
 Argentina peso (interbank)     45.1900   -0.33
                                         
 
 (Reporting by Aaron Saldanha in Bengaluru and Stefani Inouye in
Sao Paulo
Editing by Leslie Adler)
  
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