September 12, 2018 / 2:59 PM / 2 months ago

EMERGING MARKETS-Brazil markets rebound as poll triggers bargain-hunting

    By Bruno Federowski
    BRASILIA, Sept 12 (Reuters) - Brazilian markets rebounded on
Wednesday after a poll showed far-right presidential candidate
Jair Bolsonaro slightly gaining strength in a second-round vote,
driving bargain-hunting following a deep selloff.
    The Brazilian real firmed 0.6 percent after slipping
1.5 percent the day before. The benchmark Bovespa stock index
 rose 0.8 percent, led by blue chips such as oil company
Petróleo Brasileiro SA, lender Banco Bradesco SA
 and power utility Centrais Elétricas Brasileiras SA
.
    Bolsonaro, who was stabbed by an assailant at a campaign
event last week, has tapped a University of Chicago-trained
banker as his main economic advisor. Investors had hoped
Bolsonaro would benefit from a sympathy vote, reducing the
likelihood that leftist rivals Fernando Haddad and Ciro Gomes
would win this year's vote.
    A poll published on Monday showed Bolsonaro gaining little,
driving a selloff across Brazilian markets. Though he still led
in a first round vote, Bolsonaro would lose badly to most of his
main rivals in the second round, according to poll figures. Yet
a separate survey published on Tuesday suggested Bolsonaro could
still gain some impetus, drawing poll numbers within the margin
of error against nearly all his adversaries in the second round.

    The poll "confirmed Bolsonaro consolidated his leadership in
a first round vote. What's new is that he also strengthened in
the second round," analysts at Coinvalores wrote in a client
note.
    Other markets in Latam also edged up as investors took a
breather from recent losses stemming from escalating trade
tensions between the United States and major allies. Currencies
from Mexico, Chile and Colombia firmed
between 0.5 and 0.8 percent.
    
    Key Latin American stock indexes and currencies at 1400 GMT:
 Stock indexes                                daily %    YTD %
                                               change   change
                                    Latest             
 MSCI Emerging Markets               1003.33    -0.78   -13.39
 MSCI LatAm                          2379.09     -2.3   -15.88
 Brazil Bovespa                     75236.22     0.78    -1.53
 Mexico IPC                         48788.64    -0.22    -1.15
 Chile IPSA                          5226.16     0.26     0.26
 Argentina MerVal                   29163.63        0    -3.00
 Colombia IGBC                      12108.79      0.5     6.49
                                                              
 Currencies                                   daily %    YTD %
                                               change   change
                                                       
                                      Latest           
 Brazil real                          4.1276     0.62   -19.73
 Mexico peso                         19.0930     0.47     3.17
 Chile peso                            690.9     0.80   -11.04
 Colombia peso                       3064.03     0.52    -2.68
 Peru sol                              3.334     0.00    -2.91
 Argentina peso (interbank)          37.7800     0.48   -50.77
                                                       
 Argentina peso (parallel)             38.25    -2.61   -49.73
                                                       
 
 (Reporting by Bruno Federowski; Editing by Will Dunham)
  
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