February 16, 2018 / 12:46 AM / 4 months ago

EMERGING MARKETS-LatAm markets firm as global stocks rebound

 (Recasts, updates prices throughout)
    By Bruno Federowski
    SAO PAULO, Feb 15 (Reuters) - Latin American markets rose
broadly on Thursday as global stocks shrugged off recent losses
and traded higher, supporting demand for riskier assets.
    Currencies and stocks across the region gained as global
markets recovered from a deep selloff triggered by figures
showing rising U.S. wages and a quickening pace of inflation.
    Some investors fear that inflationary pressure could drive
the Federal Reserve to raise interest rates faster than expected
in the coming months, driving capital away from stocks and out
of riskier emerging market assets.
    But most licked their wounds in recent days following last
week's deep losses.
    Traders struggled to explain the move, though some said
weaker-than-expected U.S. factory output helped to drive some
bargain-hunting. Others said Asian bears may be squaring up
positions ahead of the Lunar New Year holiday.
    Currencies from Mexico, Chile and Colombia
 firmed between 0.2 percent and 0.5 percent, while MSCI's
Latin American stock index rose 1.54 percent.
    Brazil's benchmark Bovespa stock index was up nearly
1 percent, supported by a rally in shares of miner Vale SA
 on the heels of rising iron ore prices.
    But the Brazilian real seesawed as traders adjusted
their holdings following the long Carnival holiday.
    Yields on interest-rate futures fell slightly after minutes
from the central bank's latest policy meeting showed
policymakers diverged last week over how strongly to hint at the
end of rate cuts.
    Brazil's central bank last week cut the benchmark Selic
interest rate by 25 basis points, as widely expected, to an
all-time low of 6.75 percent, and it strongly hinted at the end
of the easing cycle.
    
    Key Latin American stock indexes and currencies at 2150 GMT:
 Stock indexes                Latest        Daily   YTD pct
                                              pct    change
                                           change  
 MSCI Emerging Markets          1,202.62     1.46      3.81
                                                   
 MSCI LatAm                     3,110.07     1.54      9.97
 Brazil Bovespa                84,290.57      0.9     10.32
 Mexico IPC                    48,808.39     0.84     -1.11
 Chile IPSA                     5,630.06     1.25      1.18
 Chile IGPA                    28,317.77     1.04      1.20
 Argentina MerVal              32,023.64      1.5      6.51
 Colombia IGBC                 11,688.12    -0.38      2.79
                                                           
 Currencies                       Latest    Daily   YTD pct
                                              pct    change
                                           change  
 Brazil real                      3.2274    -0.26      2.43
 Mexico peso                     18.5220     0.36      6.35
 Chile peso                       593.18     0.29      3.62
 Colombia peso                   2,854.2     0.48      4.48
 Peru sol                          3.246     0.46     -0.28
 Argentina peso (interbank)      19.6500     1.32     -5.34
                                                   
 Argentina peso (parallel)         19.81     0.76     -2.93
                                                   
 

 (Reporting by Bruno Federowski, editing by G Crosse)
  
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