EMERGING MARKETS-Brazil stocks rise as central banks calm markets
* China central bank says will continue to support lenders * ECB's Draghi says stimulus to remain for 'foreseeable future' * Brazil Bovespa gains 0.91 pct, Mexico IPC up 1.5 pct By Lucas Iberico-Lozada SAO PAULO, June 26 (Reuters) - Brazilian stocks rose on Wednesday, tracking global markets higher as the world's major central banks again reassured investors that monetary conditions will remain favorable. Mexico's IPC index extended to climb a few days after hitting a near one-year low, while Chile's bourse rose for the second straight session. The Chinese central bank late on Tuesday said that it had aided some banks and would continue to do so as a lender of last resort for those facing short-term cash shortages, which calmed investor concerns over a potential banking crisis. China, which is Brazil's top trading partner, is a key market for Latin American raw material exports such as iron ore, soybeans, petroleum and copper. Shares were also buoyed after European Central Bank President Mario Draghi said on Wednesday that the ECB would not be scaling back its stimulus for the "foreseeable future." Brazil's benchmark Bovespa stock index climbed for a second straight day, adding 0.91 percent to 47,320.45 points. "We are seeing improvement in the global perspective for risk aversion," said Newton Rosa, chief economist of SulAmerica Investimentos in Sao Paulo. "The news of the Fed's eventual stimulus tapering has settled in, and the signs that the Chinese central bank is still giving support to the economy has brought some relief." Shares of the most widely traded commodities exporters led the Bovespa higher. A 4.8-percent rise in shares of OGX Petroleo e Gas Participacoes SA, the oil company controlled by Brazilian billionaire Eike Batista, was the biggest contributor to the index's gains. Shares of LLX Logistica SA, also controlled by Batista, soared 21 percent after the company said late Tuesday that it had hired financial advisers to evaluate business opportunities involving its assets. Batista has been selling stakes in his EBX industrial conglomerate as debt obligations loom. The Bovespa is down more than 22 percent so far this year, compared with a 12 percent rise in the U.S. benchmark S&P 500 index, as a sluggish local economy and the expectation for weak corporate earnings have kept foreign investors at arm's length. "Brazilians are optimistic by nature, but I think we have a hard road ahead. If we can break the downward trend that has been felt in the market for the past few weeks, then we can get a breath of fresh air. But the long-term perspective is a difficult one," said Fabio Goncalves, an analyst with Banrisul in Porto Alegre. Mexico's IPC index rose by the most in nearly a month, adding 1.5 percent to 38,469.01 points. Bottling group Femsa jumped 3.2 percent, boosting the index's gains, while telecommunications firm America Movil, controlled by billionaire Carlos Slim, rose 1.4 percent. Chile's IPSA index rose the most in nearly two weeks, adding 0.84 percent to 3,853.39, as shares of retailer Falabella advanced 1.35 percent. Latin America's key stock indexes at 1521 GMT: Stock indexes Latest Daily YTD pct pct change change MSCI Latam 3,083.35 1.79 -20.24 Brazil Bovespa 47,320.45 0.91 -22.36 Mexico IPC 38,469.01 1.5 -11.98 Chile IPSA 3,853.39 0.84 -10.42 Chile IGPA 19,220.25 0.64 -8.78 Argentina MerVal 3,007.06 -0.2 5.35 Colombia IGBC 12,511.14 0.75 -14.98 Peru IGRA 15,294.93 -0.22 -25.86 Venezuela IBC 987,565.13 1.14 109.48
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