February 22, 2019 / 2:44 PM / 3 months ago

EMERGING MARKETS-Brazil stocks, Latam currencies rise on trade optimism, oil prices

    * Latam currencies rise on higher oil prices 
    * Sid Nacional tops Bovespa for 2nd day on stellar earnings 
    * Chile's peso at best levels since August 2018 

    Feb 22 (Reuters) - Brazil stocks rose on Friday as signs of
progress in the ongoing trade talks between the United States
and China overshadowed global growth fears, boosting appetite
for equities globally. 
    Latin American currencies strengthened on Friday as the
dollar softened and oil prices hit a 2019 high on OPEC's ongoing
supply cuts.
    Chinese Vice Premier Liu He is expected to meet with U.S.
President Donald Trump at the White House on Friday, after their
teams haggled through the week to sort out some on the most
contentious issues of the trade war.
    The meeting will be crucial, since just a week remains
before Washington's deadline for imposing tariffs on Chinese
goods imported to U.S. resumes. 
    Sao Paulo's Bovespa index rose 0.3 percent in line
with emerging market stocks which climbed to their
highest since September 2018 on trade optimism. 
    "The movement today is purely externally driven, there is no
local optimism and we have not seen any news or progress with
respect to Social Security," said Cleber Alessie Machado, a
derivatives broker at brokerage H.Commcor. The market is hoping
Brazil's congress will pass an overhaul to cut the deficit in
the government's Social Security system. 
    Materials stocks led by steelmaker Sid Nacional
helped lift the index but gains were capped by losses from the
consumer sector led by     airline miles provider Smiles
Fidelidade and retailer Via Varejo. 
    Currencies in the region jumped with Brazil's real
leading gains and Chile's peso rising to its highest
since August 2018, due to a sharp rise in the price of Chile's
top export, copper.
    Mexico's peso was set to hold gains for the first
time in three days as oil prices hit 2019 highs. 
    The Mexican central bank's latest monetary policy meeting
minutes released on Thursday showed most board members concerned
about a credit rating downgrade for state oil company Pemex.
    Ratings agency Fitch double-downgraded Pemex's credit to the
last rung of investment grade last month, sparking speculation
that Mexico's sovereign rating was possibly next.
    Key Latin American stock indexes and currencies at 1430 GMT

 Stock indexes                             daily %
                               Latest       change
 MSCI Emerging Markets           1055.99      0.48
 MSCI LatAm                      2880.48      0.22
 Brazil Bovespa                 97155.68      0.33
 Mexico IPC                            -         -
 Chile IPSA                      5445.47      0.12
 Argentina MerVal                      -         -
 Colombia IGBC                         -         -
 Currencies                                daily %
 Brazil real                      3.7353      0.69
 Mexico peso                     19.1670      0.62
 Chile peso                        650.6      0.54
 Colombia peso                    3115.4      0.22
 Peru sol                              -         -
 Argentina peso (interbank)            -         -

 (Reporting by Agamoni Ghosh in Bengaluru; Additional reprting
by Camila Moreira in Sao Paulo; Editing by David Gregorio)
Nuestros Estándares:Los principios Thomson Reuters
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