August 31, 2017 / 4:42 PM / a year ago

EMERGING MARKETS-Chile peso extends rally as China data lifts copper

    By Bruno Federowski
    SAO PAULO, Aug 31 (Reuters) - The Chilean peso and the
Brazilian real strengthened on Thursday as strong Chinese
industrial figures lifted metal prices, but the Mexican peso
slipped on lingering concerns over North American Free Trade
Agreement talks.
    Growth in China's manufacturing sector unexpectedly
accelerated in August, suggesting the world's second-largest
economy is still expanding at a healthy clip.
    The figures fueled bets on strong demand for basic metals,
lifting prices of major Latin American exports such as iron ore
and copper.
    That provided a further boost to the Chilean peso's
recent rally, which drove it near two-year highs.
    "The Chilean peso has been on a tear, boosted by rising
copper prices," strategists at Brown Brothers Harriman wrote in
a report. "We think the copper rally is overdone, but the growth
outlook has improved, while political uncertainty may pick up as
November elections approach."
    Such political uncertainty grew on Thursday after Chilean
Finance Minister Rodrigo Valdes resigned, citing differences
over economic policy with members of President Michelle
Bachelet's center-left coalition government.
    Some saw Valdes' resignation, ahead of the November
presidential and parliamentary elections, as a blow to the
center-left and its presidential candidate, Alejandro Guillier,
a senator who is most closely tied to Bachelet's coalition.
    The Brazilian real strengthened 0.6 percent in
volatile trading as investors tried to influence a benchmark
foreign exchange rate calculated at the last trading day of each
    The Mexican peso, however, extended recent losses.
Negotiations between the United States, Canada and Mexico over
NAFTA have been thornier than expected, fueling concerns of
increased U.S. protectionism that could hurt the Mexican
    Key Latin American stock indexes and currencies at 1630 GMT:
 Stock indexes                                 daily %   YTD %
                                      Latest    change  change
 MSCI Emerging Markets                1087.80    -0.02   26.18
 MSCI LatAm                           2873.67     0.24   22.48
 Brazil Bovespa                      70844.66    -0.06   17.63
 Mexico S&P/BVM IPC                  51050.07    -0.28   11.85
 Chile IPSA                           5139.45    -0.33   23.80
 Chile IGPA                          25679.93     -0.2   23.85
 Argentina MerVal                    23547.35     0.24   39.19
 Colombia IGBC                       10926.27     0.42    7.88
 Venezuela IBC                      235057.77     4.25  641.39
 Currencies                                    daily %   YTD %
                                                change  change
 Brazil real                           3.1409     0.59    3.45
 Mexico peso                          17.7830    -0.40   16.65
 Chile peso                             626.6     0.93    7.04
 Colombia peso                        2942.92     0.34    1.99
 Peru sol                               3.241    -0.06    5.34
 Argentina peso (interbank)           17.3650     0.20   -8.58
 Argentina peso (parallel)              18.19     0.38   -7.53
 (Reporting by Bruno Federowski; Editing by Lisa Von Ahn)
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below