January 19, 2018 / 2:40 PM / a year ago

EMERGING MARKETS-Brazil stocks hold near all-time highs; Embraer jumps

    By Bruno Federowski
    BRASILIA, Jan 19 (Reuters) - Brazilian stocks hovered near
all-time highs on Friday as optimism over the nation's economic
prospects sustained demand for local assets, while hopes of a
tie-up with Boeing Co boosted shares of Embraer SA
    The benchmark Bovespa stock index rose 0.2 percent,
supported by blue chips such as Vale SA and lenders
Banco Bradesco SA and Itaú Unibanco Holding SA
    Emerging markets kicked off the year with a rally as several
reports showing strong economic growth worldwide fostered
appetite for high-yielding assets. Brazil's stock market
outperformed, supported by expectations that policymakers will
plug a budget gap and rein in runaway public debt.
    Embraer shares advanced 2.3 percent on Friday, their biggest
daily gain in two weeks, as traders bet the planemaker could
strike a deal with Boeing to help face down a partnership
between rivals Bombardier Inc and Airbus SE.
    Reuters reported late on Thursday that Boeing was working to
overcome the Brazilian military's objections to its proposed
tie-up with Embraer with alternatives that would preserve the
government's strategic veto rights and ensure safeguards for its
defense programs.
    Latin American currencies were little changed as heightened
fears of a U.S. government shutdown unnerved investors. Brazil
Mexico and Chile's currencies all slipped 0.1 percent, while the
Colombian peso fell 0.4 percent.
    Legislation to stave off an imminent shutdown of the U.S.
federal government hit obstacles in the Senate on Thursday
night, despite the passage of a monthlong funding bill by the
House of Representatives. 
    Without the injection of new money, no matter how temporary,
scores of federal agencies will be forced to close at midnight
on Friday, when existing funds expire.
    Key Latin American stock indexes and currencies at 1400 GMT:
 Stock indexes                                daily %    YTD %
                                               change   change
 MSCI Emerging Markets               1232.02     0.37     5.96
 MSCI LatAm                          3069.96     0.11     8.43
 Brazil Bovespa                     81143.40     0.22     6.21
 Chile IPSA                          5842.45     0.05     4.99
 Chile IGPA                         29334.33     0.05     4.84
 Currencies                                   daily %    YTD %
                                               change   change
 Brazil real                          3.2105    -0.05     3.20
 Mexico peso                         18.6120    -0.08     5.84
 Chile peso                           605.35    -0.07     1.54
 Colombia peso                       2854.18    -0.37     4.48
 Peru sol                              3.215    -0.03     0.68
 Argentina peso (interbank)          18.9450    -0.37    -1.82
 Argentina peso (parallel)             19.59     0.15    -1.84
 (Reporting by Bruno Federowski)
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