December 3, 2018 / 2:12 PM / 12 days ago

EMERGING MARKETS-Mexican peso jumps on airport bond buyback plan, trade relief

    * Brazil stocks climb to an all-time high 
    * López Obrador took office as Mexico's President on
Saturday
    * Chilean peso at two-month high 

    By Agamoni Ghosh
    Dec 3 (Reuters) - The Mexican peso rallied on Monday after
authorities offered to buy back bonds tied to a scrapped airport
project, while a trade truce between the United States and China
offered relief to emerging market assets, pushing Brazilian
stocks to a record high. 
    The peso was on track to post its best day since July
after the Mexico City Airport Trust said it offered to buy back
up to $1.8 billion of the $6 billion in bonds tied to the
airport project.
    The peso has been battered in the past month by worries
about perceived policy missteps by President Andres Manuel Lopez
Obrador's team including scrapping of the partially built
airport. 
    The peso rally came despite a hard-line inauguration speech
by Obrador on Saturday, in which he pledged to bring about a
"radical" rebirth of Mexico to overturn what he called a
disastrous legacy of decades of "neoliberal" governments.

    "All in all, the tone of his speeches was less conciliatory,
from a market standpoint, than the one from the speech he
delivered on the night of the elections on 1 July," said Credit
Suisse analysts in a note on Obrador. 
    The Brazilian real gained 0.7 percent, climbing to a
one-week high against the dollar while the Chilean peso
rose 1.1 percent to reach a two-month high, as both currencies
took a cue from their emerging market counterparts. 
    Brazil's main Bovespa stock index rose 1.89 percent
to reach a fresh all-time high, led by steel and mining stocks
as the metal's price recovered amid easing U.S.-China trade
tensions. Usiminas was up 5.4 percent, leading the
market higher, while Cia Siderurgica Nacional and
Gerdau  were each gaining about 4 percent. 
    Vale, the world's largest iron ore maker, was up
4.2 percent and contributed 390 points of the Bovespa's 1,324
point rise.
    
  Key Latin American stock indexes and currencies at 1354 GMT 
 Stock indexes                              daily %     YTD %
                              Latest         change    change
 MSCI Emerging Markets           1015.93       2.13    -14.13
                                                     
 MSCI LatAm                      2661.76       2.39     -8.08
                                                     
 Brazil Bovespa                 90777.36       1.42     18.82
                                                     
 Mexico IPC                            -          -         -
                                                     
 Chile IPSA                      5175.42       1.24      1.24
                                                     
 Argentina MerVal                      -          -         -
                                                     
 Colombia IGBC                         -          -         -
                                                     
                                                             
 Currencies                                 daily %     YTD %
                                             change    change
                                  Latest             
 Brazil real                      3.8211       0.88    -13.29
                                                     
 Mexico peso                     20.0883       1.53     -1.94
                                                     
 Chile peso                        665.4       1.07     -7.63
                                                     
 Colombia peso                         -          -         -
 Peru sol                              -          -         -
                                                     
 Argentina peso (interbank)            -          -         -
                                                     
 
 (Reporting by Agamoni Ghosh in Bengaluru; Editing by David
Gregorio)
  
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