EMERGING MARKETS-Latin American stocks spike on U.S. jobs data

Fri May 3, 2013 10:45am EDT

Related Topics

* U.S. employment rises more than expected in April
    * Commodities producers drive gains
    * Brazil Bovespa rises 1.51 pct, Mexico IPC up 1.03 pct

    By Asher Levine and Danielle Assalve
    SAO PAULO, May 3 (Reuters) - Latin American stocks rose the
most in nearly a month on Friday as stronger-than-expected U.S.
employment data improved the outlook for global economic growth
and boosted commodities shares.
    The MSCI Latin American stock index rose
1.48 percent as Brazil's benchmark Bovespa index erased the
previous session's losses and Mexico's IPC index broke
through a key resistance level.
    Shares gained after data on Friday showed U.S. employment
rose more than forecast in April, with the jobless rate in the
world's largest economy falling to a four-year low of 7.5
percent. 
    Recent "numbers in the U.S. show we've had a bit of a
slowdown in growth, but the outlook is still positive for the
country," said Silvio Campos Neto, an economist with Tendencias
Consultoria in Sao Paulo. "The American economy is showing signs
of strength ... and that's driving stocks higher."
    Brazil's benchmark Bovespa stock index rose 1.51
percent to 56,159.30, its highest level in nearly a month. The
index is on track to close the session with a 3.5 percent weekly
gain, its best since late November.
    Commodities stocks contributed most to the Bovespa's gains
on Friday, with shares of iron-ore mining giant Vale SA
 up 2.5 percent and state-run oil company Petroleo
Brasileiro SA, known as Petrobras, gaining 1.5
percent.
    Local stocks with high liquidity, such as Vale and
Petrobras, tend to attract foreign investors looking for
exposure to Latin American equities, with their performance
often tracking the outlook for global economic growth.
    Shares of Cielo SA, Brazil's largest card payment
processor, edged 0.2 percent lower. While the company's first
quarter profits beat estimates on Thursday, at least five
investment banks and brokerages trimmed their price targets on
the shares, citing poor operating trends. 
    Mexico's IPC index rose its most since early April,
adding 1.03 percent to 42,524.27 and breaking technical
resistance at its 200-day simple moving average.
    Shares in mining firm Grupo Mexico rose 1.8
percent, while telecommunications firm America Movil,
controlled by billionaire Carlos Slim, added 0.85 percent.
    Chile's IPSA index advanced for the third straight
day, adding 0.57 percent to 4,334.16 as shares of retailer
Falabella rose 1 percent.
    
    Latin America's key stock indexes at 1358 GMT:
    
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,791.24      1.48     -1.63
                                                   
 Brazil Bovespa               56,159.30      1.51     -7.86
                                                   
 Mexico IPC                   42,524.27      1.03     -2.70
                                                   
 Chile IPSA                    4,334.16      0.57      0.76
                                                   
 Chile IGPA                   21,264.40      0.48      0.92
                                                   
 Argentina MerVal                  0.00         0   -100.00
                                                   
 Colombia IGBC                13,471.21      0.42     -8.46
                                                   
 Peru IGRA                    17,507.39      0.34    -15.13
                                                   
 Venezuela IBC               675,028.19         0     43.19
FILED UNDER:
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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