(Updates with closing prices, approval of austerity measure)
By Bruno Federowski
SAO PAULO, Dec 13Brazil's currency and stocks
rose on Tuesday as lawmakers approved a key austerity measure,
though there was some retrenchment by investors in Mexico ahead
of an expected interest rate hike by the U.S. Federal Reserve.
The Brazilian Senate broadly backed a constitutional
amendment limiting growth in public spending, a major step in
President Michel Temer's plan to curb public debt.
The real strengthened 0.6 percent, outperforming most of its
Latin American peers. The country's benchmark Bovespa stock
index edged up 0.17 percent, with shares of education
company Kroton SA rising more than 5.5 percent.
Analysts with JPMorgan Securities increased their
recommendation on the stock to "overweight," saying a 24 percent
underperformance compared with the benchmark index over the past
six months might be overdone.
Mexico's peso fell more than 0.3 percent against the
greenback and the IPC share index dipped by 0.09 percent as
investors waited for the Fed's monetary policy decision on
Wednesday, when the bank is widely expected to hike rates.
Most Latin American markets were fairly steady, and many
traders said the Fed hike was already priced in. However, there
are doubts over whether it will send a strong signal that
additional increases are to come.
Key Latin American stock indexes and currencies at 2310 GMT:
Stock indexes Latest Daily YTD pct
MSCI Emerging Markets 877.20 0.57 10.46
MSCI LatAm 2,334.65 0.45 27.59
Brazil Bovespa 59,280.57 0.17 36.75
Mexico IPC 46,870.24 -0.09 9.06
Chile IPSA 4,272.48 0.71 16.09
Chile IGPA 21,325.33 0.54 17.49
Argentina MerVal 17,197.47 0.23 47.30
Colombia IGBC 9,979.23 0.91 16.75
Venezuela IBC 34,991.64 -3.74 139.86
Currencies Latest Daily YTD pct
Brazil real 3.326 0.59 18.67
Mexico peso 20.283 -0.32 -15.05
Chile peso 650.8 -0.25 9.05
Colombia peso 2,970 0.67 6.71
Peru sol 3.394 0.18 0.59
Argentina peso (interbank) 15.9650 0.42 -18.68
Argentina peso (parallel) 16.31 0.12 -12.51
(Reporting by Brunno Federowski, editing by G Crosse)