October 15, 2018 / 8:25 PM / a year ago

CORRECTED-EMERGING MARKETS-Brazil and Mexico FX firm on dollar dip, stocks gain

 (Corrects headline and paragraphs 1 and 2 to show Wall St
stocks fell, not rose)
    By Susan Mathew
    Oct 15 (Reuters) - Brazil and Mexican currencies firmed
against a weaker dollar on Monday, and their stock markets rose,
bucking a decline in other emerging market counterparts.
    U.S. stocks ended lower in a choppy trading session, dragged
down by technology stocks amid lingering worries over interest
rates and corporate earnings, while the dollar dropped on U.S.
retail sales for September missing expectations and as benchmark
U.S. Treasury yields consolidated from last week's highs.

    Mexico's peso strengthened for a third straight
session, while the IPC stock index rose, erasing earlier
losses when a myriad of geopolitical issues had soured sentiment
and knocked stocks globally.
    The Brazilian real climbed more than 1.5 percent on
continued optimism that market-preferred presidential
front-runner, Jair Bolsonaro, would win the election later this
month after the latest poll saw him holding his lead against
rival Fernando Haddad from the leftist party.
    "We're opening the week with optimistic expectations about
domestic assets, against the backdrop of Fernando Haddad still
struggling to turn things around against Jair Bolsonaro in the
presidential race," analysts at H. Commcor said in a note.
    The currency has gained nearly 9 percent so far this month
compared to a more than half a percent decline in the broader
MSCI emerging market currency index over the
same period.
    Meanwhile, a 2.2 percent gain in iron ore miner Vale
 after it recorded all-time high production in the
third quarter, was the biggest boost to the benchmark Bovespa
stock index which rose 0.7 percent.
    However, a 40 percent plunge in shares of Smiles Fidelidade
SA, a loyalty program of airliner Gol Linhas Aereas
Inteligentes SA capped gains, after Gol said it plans
to buy out minority shareholders for an undisclosed price.
    Gol was among the top gainers on the index, rising 3.6
    Other Latin American markets were closed for local holidays.
    Key Latin American stock indexes and currencies at 1907 GMT:
 Stock indexes                          Daily %     YTD %
                                         change    change
 MSCI Emerging Markets          980.09     2.66     -15.4
 MSCI LatAm                    2659.44    -0.26     -5.97
 Brazil Bovespa               83495.49     0.69      9.28
 Mexico IPC                   47875.33     0.91     -3.00
 Currencies                             Daily %     YTD %
                                         change    change
 Brazil real                    3.7383     1.06    -11.37
 Mexico peso                   18.8240     0.15      4.65

 (Reporting by Susan Mathew in Bengaluru, Additional reporting
by Claudia Violante in Sao Paulo; Editing by Chris Reese)
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