By Bruno Federowski
SAO PAULO, Sept 5 Most Latin American stocks
inched up on Monday, supported by higher crude prices and
expectations of low U.S. interest rates, though trading volumes
were thin due to the Labor Day holiday in the United States.
Surprisingly weak U.S. jobs data cast doubt on Friday over
the possibility of rate hikes this year, boosting demand for
high-yielding emerging market assets.
The figures seemed to contradict recent comments by key
Federal Reserve policymakers, who have repeatedly stressed that
the U.S. central bank could tighten policy as soon as this
Higher oil prices also supported demand for
shares of oil companies, with stocks of Brazil's state-owned
Petróleo Brasileiro SA the biggest boost
to the Bovespa benchmark index.
Nevertheless, Brazil's real currency slipped on
concerns new President Michel Temer could struggle to pass
austerity measures in Congress even after the impeachment of his
predecessor, Dilma Rousseff.
Shares in meatpacker JBS SA dropped over 4
percent, leading losses in the index. Federal police questioned
on Friday the company's Chief Executive Wesley Batista about an
investment by pension funds in pulp maker Eldorado Brasil SA, on
whose board Batista sits.
Miner Vale SA also dropped, tracking a
decline in China-listed iron ore contracts .IO62-CNI=SI.
UBS analysts led by Andreas Bokkenheuser downgraded to
"sell" from "neutral" their recommendation for U.S.-listed Vale
shares, betting on lower iron ore prices during the
Shares of Oi SA, which are not part of the index,
posted their best daily gain in a month. The telecom provider is
expected to file its bankruptcy reorganization plan with a Rio
de Janeiro court on Monday, two sources familiar with the
situation told Reuters.
Key Latin American stock indexes and currencies at 1545 GMT:
Stock indexes daily % YTD %
MSCI Emerging Markets 910.73 1.24 13.28
MSCI LatAm 2453.49 0.04 34.02
Brazil Bovespa 59730.41 0.19 37.79
Mexico IPC 47929.53 0.3 11.52
Chile IPSA 4144.36 0.1 12.61
Chile IGPA 20561.37 0.09 13.28
Argentina MerVal 15963.84 -0.01 36.73
Colombia IGBC 10257.61 -0.06 20.01
Venezuela IBC 11880.32 0.31 -18.56
Currencies daily % YTD %
Brazil real 3.2737 -0.66 20.57
Mexico peso 18.5480 0.28 -7.11
Chile peso 673.2 -0.25 5.42
Colombia peso 2935.22 0.00 7.97
Peru sol 3.397 -0.41 0.50
Argentina peso (interbank) 14.9600 0.23 -13.22
Argentina peso (parallel) 15.33 0.39 -6.91
(Reporting by Bruno Federowski; Editing by Alan Crosby)