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Bonds News

EMERGING MARKETS-Latam stocks, currencies rally on positive vaccine news

    * Brazil's real, Colombian peso among top gainers
    * MSCI Latam stock index set for best day since mid-May
    * Peruvian sol lags amid impeachment proceedings

    By Ambar Warrick
    Nov 9 (Reuters) - Latin American stocks and currencies
rallied on Monday as major progress in the development of a
COVID-19 vaccine and optimism stemming from Joe Biden's win in
the U.S. presidential election encouraged buying into
risk-driven assets. 
    Drugmakers Pfizer Inc and BioNTech SE said
the experimental vaccine was more than 90% effective in
preventing COVID-19 based on initial data from a large study,
sparking a rally across global markets on hopes a vaccine would
cement an economic recovery from the pandemic.
    Brazil's real was among the best performers in Latam,
rising 2% to a three-week high, while the country's stocks
 outperformed their peers with a 3.5% jump.
    The U.S. dollar was subdued by the increased risk appetite,
enabling strong gains across most emerging market currencies.
Mexico's peso rose 1.8%, while Colombia's peso
added about 2.5%.
     The two currencies were supported by a near 10% surge in
oil prices on news of the vaccine and Saudi Arabia's assurance
that an OPEC+ oil output deal could be adjusted to balance the
market.
    "Risky assets are off to the races amid very positive
developments on a potential COVID vaccine, extending last week's
election-related gains," Ned Rumpeltin, European head of FX
strategy at TD Securities, wrote in a note. 
    "We think it is very hard to argue that markets have not
priced in a lot of good news over the last week or so. Whether
all of it is now baked into the cake is perhaps the most
relevant issue facing currency market investors right now." 
    Joe Biden's victory in the U.S. presidential race over the
weekend had seen markets starting the week on a high note, as
investors bet on a stabler U.S. trade policy with China, Europe
and Latin America. 
    The MSCI's index of emerging market stocks jumped
nearly 2% to its highest since March 2018. The Latin American
stock index jumped 5.6% and was set for its best
day in nearly six months.
    U.S. stocks were also set for record-high opens.
    Peru's sol lagged its peers for the day, as 
President Martín Vizcarra faced an impeachment trial over
corruption allegations, familiar terrain for the centrist leader
who survived a previous vote to oust him in September and an
attempt to suspend him in 2019.
    Elsewhere, Turkey's lira jumped more than 4% and was
set for its best day since the aftermath of an economic crisis
in 2018, after a major shakeup in its top economic policymakers.
    
    Key Latin American stock indexes and currencies:
    
                              Latest    Daily % change
 MSCI Emerging Markets         1199.11            1.93
                                        
 MSCI LatAm                    2117.83             5.5
                                        
 Brazil Bovespa              104433.17            3.48
                                        
 Mexico IPC                          -               -
                                        
 Chile IPSA                    3924.52            2.94
                                        
 Argentina MerVal                    -               -
                                        
 Colombia COLCAP               1172.34               - Currencies             Latest    Daily % change
 Brazil real                    5.2589            2.47
                                        
 Mexico peso                   20.1870            1.77
                                        
 Chile peso                      753.7           -0.20
                                        
 Colombia peso                 3631.67            2.45
 Peru sol                       3.5907            0.00
                                        
 Argentina peso                79.3000           -0.25
 (interbank)                            
                                        
 

 (Reporting by Ambar Warrick in Bengaluru; Editing by Krishna
Chandra Eluri)
  
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