RPT-EMERGING MARKETS-Mexican, Chilean stocks climb at fastest pace in over 1 year

Wed Jun 26, 2013 6:43pm EDT

Related Topics

* Weak U.S. data calms fears of end to monetary easing
    * ECB's Draghi says stimulus to remain for 'foreseeable future'
    * Mexico IPC up 2.38 pct, Chile IPSA up 2.15 percent

    By Lucas Iberico-Lozada and Luc Cohen
    SAO PAULO/MEXICO CITY June 26 (Reuters) - Mexican and Chilean stocks rose by
the most in more than a year on Wednesday, after weak U.S. economic data and
comments from the European central bank pointed to continued monetary stimulus,
which boosts appetite for risky assets.
    U.S. first quarter growth was revised downward significantly on Wednesday,
easing concerns that the Federal Reserve would withdraw its monetary stimulus
early.
    Latin American bourses tumbled last week after the Federal Reserve gave a
roadmap for winding down the U.S. central bank's asset-buying scheme, which has
drawn investors to emerging markets by keeping U.S. interest rates low.    
    Shares were also buoyed after European Central Bank President Mario Draghi
said on Wednesday that the ECB would not be scaling back its stimulus in the
"foreseeable future." 
    * Mexico's IPC index rose by 2.38 percent to close at 38,805.27
points, in the IPC's biggest 1-day gain since January 2012, just two days after
the index hit a one-year low. The gains were led by a 2.96 percent uptick in
shares of billionaire Carlos Slim's telecommunications firm America Movil
. 
    * The peso's weakness contributed in part to the rally, said Luis Rodriguez,
director of analysis at brokerage firm Finamex. He said the market would have to
cross 39,000 on Thursday to confirm the upward movement.
    *  A 3.5 percent rise in shares of retailer Falabella buoyed a 2.15
percent climb in Chile's leading stock index, its biggest rise since
November 2011. The index closed at 3,903.31. 
    * Brazil's Bovespa pared gains, closing up 0.59 percent at
47,171.98, after climbing more than 1.5 percent earlier in the session. Oil and
gas company OGX Petroleo, owned by billionaire Eike Batista, led
gains with a 12.05 percent rise. 
    * "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."
    
    Latin America's key stock indexes at 2134 GMT:
 Stock indexes           Latest        daily % change   YTD % change
 MSCI LatAm                3,091.53              2.06          -18.6
                                                       
 Brazil Bovespa           47,171.98              0.59         -22.61
                                                       
 Mexico IPC               38,805.27              2.38         -11.21
                                                       
 Chile IPSA                3,903.31              2.15          -9.25
                                                       
 Chile IGPA               19,404.11               1.6          -7.91
                                                       
 Argentina MerVal          2,966.51             -1.54           3.93
                                                       
 Colombia IGBC            12,544.51              1.02         -14.76
                                                       
 Peru IGRA                15,134.25             -1.27         -26.64
                                                       
 Venezuela IBC           987,565.13              1.14         109.48
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