October 11, 2018 / 7:40 PM / in 2 months

EMERGING MARKETS-Latam FX rises on dollar weakness; stocks track Wall St lower

    Oct 11 (Reuters) - A dented dollar lent support to most
Latin American currencies on Thursday, with the Argentine peso
firming for the seventh session in nine, while regional stock
markets mirrored the gloom on Wall Street.
    The dollar weakened after a lower-than-expected rise in U.S.
inflation dampened the case for an aggressive rate hike pace by
the Federal Reserve, but could not stop Wall Street extending
its slide for a sixth straight session.

    Argentina's peso firmed the most among regional
currencies, while the Mexican peso rose after three
straight losing days. 
    The Argentine peso on Wednesday had ended a three-day
winning streak on concerns that the central bank's sale of
short-term debt at ultra-high rates could increase the risk of
its indebtedness.
    The Merval stock index, however, shed more that 2
percent, extending losses for a third straight session.    
    "Whether due to internal or external noise, the reality is
that local assets are still immersed in a downward trend, faced
with growing investor mistrust," said Gustavo Ber, an economist
at Estudio Ber consultancy. 
    Argentina's recession-riddled currency has lost half its
value against the dollar this year and is on pace to log its
biggest yearly loss ever, while the Merval is set to end a
six-year winning streak.
    Brazil's real gave up earlier  gains to trend lower
for a second straight day. The losses followed a seven-day rally
underpinned by signals that the country would elect a
market-preferred presidential candidate later this month.

    A survey late on Wednesday added to the optimism, showing
presidential front-runner Jair Bolsonaro with a significant lead
over rival Fernando Haddad for the Oct. 28 run-off election.  
    "For domestic assets there are favorable winds coming from
politics as the Datafolha survey showed that Bolsonaro held a
16-point lead over Haddad, ... but given the risk aversion
environment in global markets, the positive trend may reverse
over time," SulAmérica Investimentos said in a note.    
      
    Key Latin American stock indexes and currencies at 1900 GMT:
 Stock indexes                            Daily %      YTD %
                                           change     change
                               Latest              
 MSCI Emerging Markets            985.67    -0.84     -14.91
                                                   
 MSCI LatAm                      2691.97    -2.25      -4.82
                                                   
 Brazil Bovespa                 82834.40    -1.01       8.42
 Mexico IPC                     47562.60    -1.19      -3.63
 Chile IPSA                      5173.44    -1.13      -1.13
                                                   
 Argentina MerVal               27843.40    -2.47      -7.39
                                                   
 Colombia IGBC                  12257.72    -1.22       7.80
                                                   
                                                            
 Currencies                               Daily %      YTD %
                                           change     change
                                  Latest           
 Brazil real                      3.7710    -0.24     -12.14
                                                   
 Mexico peso                     19.0110     0.76       3.62
                                                   
 Chile peso                        682.8     0.73      -9.98
                                                   
 Colombia peso                   3088.65     0.14      -3.45
 Peru sol                          3.328     0.00      -2.73
                                                   
 Argentina peso (interbank)      36.5500     1.92     -49.11
                                                   
 Argentina peso (parallel)            37     1.35     -48.03
                                                   
 


 (Reporting by Susan Mathew in Bengaluru, Water Bianchi in
Buenos Aires and Claudia Violante in Sao Paulo; Editing by
Leslie Adler)
  
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