April 10, 2019 / 3:15 PM / 3 months ago

EMERGING MARKETS-Brazil's Bovespa leads losses in Latam stocks; FX steady

    By Agamoni Ghosh
    April 10 (Reuters) - Latin American shares fell on Wednesday
led by Brazil stocks as the government's ability to build
political consensus on the pension reform remained uncertain,
while currencies of net crude exporters in the region rose on
the back of higher oil prices.  
    MSCI's index of Latin American stocks fell
marginally with most indices in the red, barring Mexico stocks
 which edged 0.2 percent higher. 
    Sao Paulo-traded stocks dropped 0.4 percent, as
losses in financials, typically sensitive to news related to the
pension reform, weighed the most on Bovespa.
    Treasury Secretary Mansueto Almeida said that success of the
pension reform will depend on the government's ability to build
political consensus and Brazil will need to further slash public
spending to deliver a high level of savings.
    The pension reform is seen as the most important economic
reform for Brazil and its mounting fiscal deficit, but investors
worry that dilution of the original plan may not result in the
savings promised by President Jair Bolsonaro.
    The central bank chief, Campos Neto, underlined similar
concerns, saying fiscal challenges were focused around three
areas - pension reform, public sector salaries and interest of
debt amid a challenging international environment. 
 
    Mexican stocks flitted between positive and negative
while the peso rose for a fifth-straight session on the
back of higher oil prices. 
    Chile's peso rose marginally. The country's central
bank will hold off on hiking its benchmark interest rate until
December amid subdued forecasts for growth in the world's top
copper producer, a monthly poll of 57 analysts published by the
bank showed.
    Argentina's peso eased off record-low levels hit
earlier this week but market participants were increasingly
concerned about the currency. Analysts believe renewed market
volatility could spark another currency crisis for Latin
America's third-largest economy.
        
    Key Latin American stock indexes and currencies at 1505 GMT
       
 Stock indexes                        daily %
                             Latest    change
 MSCI Emerging Markets       1095.45     0.18
                                      
 MSCI LatAm                  2838.20    -0.07
                                      
 Brazil Bovespa             95839.52    -0.47
                                      
 Mexico IPC                 45011.46    -0.31
                                      
 Chile IPSA                  5275.46    -0.12
                                      
 Argentina MerVal           32252.70      1.6
                                      
 Colombia IGBC              13263.95     0.15
                                      
                                             
 Currencies                           daily %
                                       change
                              Latest  
 Brazil real                  3.8279     0.67
                                      
 Mexico peso                 18.8375     0.49
                                      
 Chile peso                    662.5     0.20
                                      
 Colombia peso               3093.96     0.24
 Peru sol                      3.293     0.03
                                      
 Argentina peso              43.1000     0.72
 (interbank)                          
                                      
 

 (Reporting by Agamoni Ghosh
Editing by Nick Zieminski)
  
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