EMERGING MARKETS-Brazil stocks rise on hopes of fuel price hike, China PMI

Thu Aug 22, 2013 11:07am EDT

Related Topics

* Brazil government expected to announce fuel price hike
    * China, U.S., Eurozone manufacturing data rose in August
    * Brazil Bovespa up 1.52 pct, Mexico IPC up 0.34 pct

    By Lucas Iberico-Lozada
    SAO PAULO, Aug 22 (Reuters) - Brazilian stocks rose on
Thursday as shares of heavily weighted commodities exporters
rose after local media said the government plans to raise fuel
prices, while Chinese manufacturing data suggested a rebound in
Brazil's biggest trading partner.
    Mexico's IPC index and Chile's bourse also
gained.
    Three newspapers reported that the Brazilian government is
planning to raise gasoline and diesel prices in an effort to
support state-run oil producer Petroleo Brasileiro SA, known as
Petrobras. 
    The news boosted the firm's shares as much as 4.5 percent in
early trading. They cooled off somewhat after President Dilma
Rousseff's spokesman said she had not discussed the matter, but
were still up 3.3 percent. 
    Shares of steelmakers and iron-ore exporters rose after
HSBC's Purchasing Managers' Index suggested that China's
manufacturing sector was rebounding from a recent slump.
 
    China is Brazil's biggest trading partner and an important 
purchaser of Latin American commodities exports such as iron
ore, soy, copper and petroleum.
    "This is a breath of fresh air for the Chinese, an indicator
that their economy will grow for the next few months" said Pedro
Galdi, an analyst at SLW Corretora in Sao Paulo. "Such growth
will certainly benefit Vale and the steel firms."
    Shares of Vale SA, the world's largest iron-ore
miner, gained 3.3 percent, while steelmakers Gerdau SA
, Usinas Siderurgicas de Minas Gerais SA 
and Cia Siderurgica Nacional (CSN) rose 3.2, 2.3, and
3.2 percent, respectively.
    Brazil's benchmark Bovespa stock index rose 1.52
percent to 51,170.80, nearly erasing losses from the previous
two sessions.
    Mexico's IPC index rose 0.34 percent to 41,598.46 as
the index recovered slightly from the previous session's decline
that it at its lowest level this month.
    Shares of America Movil, the telecommunications
firm controlled by billionaire Carlos Slim, and retail giant Wal
Mart de Mexico both gained 1 percent.
    Chile's IPSA index snapped a six-session slump,
adding 0.71 percent to 3,646.25.
    Shares of forestry and energy conglomerate Empresas Copec
 led the session's gains, with an uptick of 1.2 percent.
    
    Latin America's key stock indexes at 1429 GMT:
 Stock indexes                                 daily %    YTD %
                         Latest                 change   change
 MSCI LatAm                     3,067.24          0.06   -19.29
                                                        
 Brazil Bovespa                51,170.80          1.52   -16.05
                                                        
 Mexico IPC                    41,598.46          0.34    -4.82
                                                        
 Chile IPSA                     3,646.25          0.71   -15.23
                                                        
 Chile IGPA                    18,096.17          0.55   -14.12
                                                        
 Argentina MerVal               3,894.45          1.09    36.44
                                                        
 Colombia IGBC                 13,706.37         -0.01    -6.86
                                                        
 Peru IGRA                     16,648.10           0.2   -19.30
                                                        
 Venezuela IBC              1,293,082.81             0   174.29
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