EMERGING MARKETS-LatAm currencies up as rising China shares foster risk appetite

By Bruno Federowski
BRASILIA, July 13 (Reuters) – Most Latin American currencies
strengthened on Friday as rising Chinese shares brought solace
to investors following weeks of losses driven by escalating
global trade frictions.
China stocks posted their best week in over two
years as historically low valuations brought back buyers.
That
triggered a bounce back across riskier, emerging-market assets,
which have taken a beating in recent weeks.
Foreign exchange markets across Latin America followed
along, with currencies from Brazil, Mexico,
Chile and Colombia strengthening between 0.
2 and
0.7 percent due to rising risk appetite.
“Brazilian currency markets are likely to track foreign
markets while the presidential race remains ‘on pause’ and
without major economic indicators set to be released,” analysts
at H.Commcor brokerage wrote in a report.
Brazil’s benchmark Bovespa stock index also rose,
but saw some volatility due to a heavy batch of corporate news.
Shares of Cielo, Brazil’s largest payment
processor, plummeted after its chief executive officer resigned,
citing personal and family-related issues.
Retailer GPA SA jumped after it reported strong
quarterly revenue, as robust sales in its wholesale stores
offset the negative impact of a major truckers’ strike.

Key Latin American stock indexes and currencies at 1530 GMT:
Stock indexes daily % YTD %
change change
Latest
MSCI Emerging Markets 1074.
34 0.38 -7.
61
MSCI LatAm 2572.98 0.
19 -9.2
Brazil Bovespa 76403.
77 0.72 0.
00
Mexico IPC 48358.37 -0.
69 -2.02
Chile IPSA 5268.
24 -0.29 -5.
33
Chile IGPA 26701.45 -0.
24 -4.57
Argentina MerVal 26593.
99 -0.42 -11.
55
Colombia IGBC 12279.72 0.
29 7.99

Currencies daily % YTD %
change change

Latest
Brazil real 3.
8552 0.71 -14.
06
Mexico peso 18.8685 0.
61 4.40
Chile peso 647.
45 0.17 -5.
07
Colombia peso 2857.9 0.
56 4.34
Peru sol 3.
27 0.06 -1.
01
Argentina peso (interbank) 27.2350 -0.
02 -31.71

Argentina peso (parallel) 28.
45 0.00 -32.
41

(Reporting by Bruno Federowski
Editing by Phil Berlowitz)
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