May 28, 2019 / 3:00 PM / 3 months ago

EMERGING MARKETS-Brazil markets outperform in otherwise subdued Latam

    By Susan Mathew
    May 28 (Reuters) - Most Latin American stocks and currencies
weakened on Tuesday amid the broader theme of lingering
U.S-China trade tensions, while Brazil markets outperformed on
reform hopes.
    Mexico's peso fell 0.3%, while Chile's currency
 dropped 0.7% to its lowest since the first quarter of 
2016, as the dollar strengthened. 
    The Peruvian sol also fell 0.2% against a stronger
dollar, while the Brazilian and Colombian
currencies eked out gains.
    "It's not a pure Latam story today. It's about watching the
dollar's move," said Christian Lawrence, senior market
strategist at Rabobank. "I tend to think I would be a seller of
most EM currencies this week."
    The dollar index, which measure the greenback against
a basket of six peers, was up 0.2% with trade tensions and
weakness in the euro on Italian budget worries buoying the U.S.
currency.
    Most stock in Latin America slipped, with Colombian stocks
 down more than a percent to a more than three-month low.
State oil firm Ecopetrol slid 4.2% with oil prices
trading mixed. 
    Mexican shares looked set to stretch losses to a
sixth straight session. 
    Brazil stocks touched a 2/1-2 week high, extending
gains from Monday when they rose after a march over the weekend
by supporters of President Jair Bolsonaro added pressure on
Congress to pass reforms, such as those on the pension system,
seen as essential to the economy. 
    "Sunday demonstrations in support of the government have
helped bring a more optimistic climate to the market," said
Régis Chinchilla, an analyst with Terra Investiments. 
    Banks led the rally, while petrochemicals producer Braskem
SA was among the top gainers after its board approved
an agreement with authorities to pay 410 million reais to settle
its involvement in the 'Car Wash' corruption case.
        
    Key Latin American stock indexes and currencies at 1444 GMT:
    Stock indexes             Latest    Daily %
                                         change
 MSCI Emerging Markets          988.80     -0.04
                                        
 MSCI LatAm                    2610.63      0.08
                                        
 Brazil Bovespa               95417.90      0.58
                                        
 Mexico IPC                   42419.39     -0.17
                                        
 Chile IPSA                    4851.23      0.02
                                        
 Argentina MerVal             35413.66      -0.1
                                        
 Colombia IGBC                11913.67     -1.15
                                        
                                                
       Currencies             Latest    Daily %
                                         change
 Brazil real                    4.0209      0.35
                                        
 Mexico peso                   19.1303     -0.40
                                        
 Chile peso                      703.4     -0.70
                                        
 Colombia peso                 3351.82      0.17
 Peru sol                        3.353     -0.03
                                        
 Argentina peso                44.7800      0.49
 (interbank)                            
                                        
 
 

 (Reporting by Susan Mathew in Bengaluru and Stefani Inouye in
Sao Paulo;
Editing by Nick Zieminski)
  
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