March 8, 2018 / 11:09 PM / 2 months ago

EMERGING MARKETS-Mexican peso, stocks up as Trump allows tariff exemptions

 (Recasts with U.S. tariff decision, updates prices)
    By David Alire Garcia
    MEXICO CITY, March 8 (Reuters) - Mexico's peso currency and
stocks gained on Thursday following reports that U.S. President
Donald Trump will exempt Mexico and Canada from new steel and
aluminum tariffs.
    The peso strengthened 0.28 percent, while the benchmark
S&P/BMV IPC index gained 1.21 percent, its biggest jump
since Jan. 2.
    Mexican cement maker Cemex led winners on the
index as its shares rose more than 4 percent.
    The tariff exemptions for Canada and Mexico would start
immediately with an unspecified duration, a U.S. administration
official said, adding that their continuation depends partly on
progress in negotiations to modernize the North American Free
Trade Agreement.
    Mexican and Canadian trade officials have rejected the NAFTA
linkage.
    Concerns that the tariffs would spark a global trade war
hurt demand for commodity-linked assets elsewhere in Latin
America, especially after China warned it will respond "as
necessary".
    Brazilian stocks were the biggest decliners among Latin
American equity markets, dropping 0.58 percent and weighed down
by falling prices of iron ore and a heavy batch of corporate
updates.
    Shares in Embraer SA dropped more than 3 percent
after the planemaker reporter lower-than-expected quarterly
profits due to weaker deliveries to airlines and writedowns. 
    Shares of Localiza Rent a Car SA, however, jumped
more than 5 percent to an all-time high after fourth-quarter net
income surged 27 percent.
    Outside of Mexico, only Argentina's peso gained among Latin
American currencies on Thursday, up 0.29 percent.
        
    Key Latin American stock indexes and currencies at 2143 GMT:
 
    
 Stock indexes           Latest    daily % change   YTD % change
                                                   
 MSCI Emerging           1195.24             0.51           3.18
 Markets                                           
 MSCI LatAm              3069.19            -0.52           8.52
                                                   
 Brazil Bovespa         84984.61            -0.58          11.23
                                                   
 Mexico IPC             48240.00             1.21          -2.26
                                                   
 Chile IPSA              5576.37             0.48           0.21
                                                   
 Chile IGPA             27909.01             0.38          -0.26
                                                   
 Argentina MerVal       32822.60             0.24           9.17
                                                   
 Colombia IGBC          11428.84              0.3           0.51
                                                   
 Venezuela IBC           4928.78             1.25         290.20
                                                   
                                                                
 Currencies              Latest    daily % change   YTD % change
                                                   
                                                   
 Brazil real              3.2675            -0.18           1.40
                                                   
 Mexico peso             18.6585             0.28           5.58
                                                   
 Chile peso                605.6            -0.50           1.49
                                                   
 Colombia peso              2875            -0.33           3.72
                                                   
 Peru sol                  3.258            -0.15          -0.64
                                                   
 Argentina peso          20.3500             0.29          -8.60
 (interbank)                                       
                                                   
 Argentina peso            20.46             0.20          -6.01
 (parallel)                                        
                                                   
 
    

 (Reporting by Bruno Federowski in Brasilia and David Alire
Garcia in Mexico City; Editing by Jonathan Oatis and Rosalba
O'Brien)
  
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