September 27, 2019 / 1:43 PM / 18 days ago

EMERGING MARKETS-LATAM Airline shares soar on Delta deal, Brazil's real set for weekly loss

    Sept 27 (Reuters) - Chilean shares led Latin American stock
markets higher on Friday as shares of the region's largest
carrier, LATAM Airlines, rose sharply after U.S. carrier Delta
Air Lines bought a sizeable stake.  
    Delta bought a 20% stake in LATAM for $1.9
billion, creating a major new partnership and ending the Chilean
carrier's ties with American Airlines, which has long
been the leading U.S. carrier in the region.
    Shares of LATAM gained over 30%, thrusting Chile's SPIPSA
index over 2% higher and lifting MSCI's index of Latin
American stocks.
    As a result of the deal, Delta is set to exit Brazil's
largest airline Gol, whose shares fell 6%, weighing
on Sao-Paulo's Bovespa index. 
    Brazil's real rose 0.4% after the central bank said 
the most efficient tools at its disposal would be used to
intervene in the foreign exchange market if required.

    The real is set to record its third straight week of losses,
partly owing to interest rates being slashed to record lows.
    Mexico's peso and Chile's peso rose
marginally, but were on track to end the week lower. 

 Latin American stock indexes and currencies at 13:19 GMT  
 Stock indexes                             daily % change
                           Latest          
 MSCI Emerging Markets            1005.99           -0.33
                                           
 MSCI LatAm                       2691.11            0.09
                                           
 Brazil Bovespa                 105207.58           -0.11
                                           
 Mexico IPC                             -               -
                                           
 Chile IPSA                       5144.26            2.35
                                           
 Argentina MerVal                       -               -
                                           
 Colombia IGBC                          -               -
                                           
                                                         
 Currencies                                daily % change
                                   Latest  
 Brazil real                       4.1580            0.07
                                           
 Mexico peso                      19.6445            0.10
                                           
 Chile peso                        724.95            0.12
                                           
 Colombia peso                    3448.51           -0.14
 Peru sol                          3.3748            0.21
                                           
 Argentina peso                   57.2700           -0.09
 (interbank)                               
                                           
 

 (Reporting by Agamoni Ghosh; editing by John Stonestreet)
  
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