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EMERGING MARKETS-Brazil stocks rebound on bargain hunting; political woes linger
May 23, 2017 / 4:31 PM / 7 months ago

EMERGING MARKETS-Brazil stocks rebound on bargain hunting; political woes linger

    By Bruno Federowski
    SAO PAULO, May 23 (Reuters) - Brazilian stocks rebounded on
Tuesday as investors hunted for bargains after a political
scandal broke out last week, triggering a wide selloff.
    Still, concerns over the future of an ambitious reform
agenda, seen as key to restoring Brazil's economic growth, kept
a lid on market gains, with the real almost flat.
    Brazil's benchmark Bovespa stock index rose 1.5
percent after losing 8.7 percent in the three previous trading
    Blue-chip companies, such as lenders Itaú Unibanco Holding
SA and Ambev SA, added the most points to
the index. Conversely, shares of export-oriented companies,
which have rallied as the real tumbled, traded slightly higher.
    JBS SA, the world's largest meatpacker whose
controlling shareholders are at the center of the scandal,
extended their recent slide, as downgrades by ratings agencies
Fitch Ratings and Moody's Investor Services fostered concerns
over funding costs.
    Currencies from other Latin American economies seesawed,
tracking prices of commodities as traders awaited further
    Oil-related currencies, such as Colombia's and
Mexico's pesos, firmed slightly as expectations of an
OPEC-led cut to global crude output lifted prices of oil
    The Chilean peso, however, weakened 0.5 percent, in
line with a decline in prices of copper, a key export, as
traders saw a drop in Chinese imports as a sign of healthy
supply worldwide.
    Key Latin American stock indexes and currencies at 1615 GMT:
 Stock indexes                              daily %    YTD %
                                  Latest     change   change
 MSCI Emerging Markets            1003.19     -0.05     16.4
 MSCI LatAm                       2526.75      1.05     6.83
 Brazil Bovespa                  62600.53       1.5     3.94
 Mexico IPC                      48958.24      0.03     7.26
 Chile IPSA                       4823.37      0.43    16.19
 Chile IGPA                      24216.67      0.39    16.80
 Argentina MerVal                21490.49     -0.04    27.03
 Colombia IGBC                   10749.92      0.37     6.14
 Venezuela IBC                   72297.13     -0.49   128.03
 Currencies                                 daily %    YTD %
                                             change   change
 Brazil real                       3.2759     -0.03    -0.82
 Mexico peso                      18.6305      0.17    11.34
 Chile peso                        673.62     -0.48    -0.43
 Colombia peso                     2902.9      0.04     3.40
 Peru sol                           3.282     -0.21     4.02
 Argentina peso (interbank)       16.0500      0.86    -1.09
 Argentina peso (parallel)          16.24     -0.12     3.57

 (Reporting by Bruno Federowski; Editing by Diane Craft)

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