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

Thu Aug 22, 2013 7:13pm EDT

Related Topics

* Brazil government expected to announce fuel price hike
    * China, U.S., Eurozone manufacturing data rose in August
    * Brazil Bovespa up 1.97 percent
    * Mexico IPC down 1.09 percent


    MEXICO CITY, Aug 22 (Reuters) - Brazilian stocks rose on
Thursday led by commodities exporters, after reports said the
government plans to raise fuel prices and upbeat Chinese
manufacturing data suggested a rebound in Brazil's biggest
trading partner.
    Mexico's IPC index and Chile's bourse dipped,
with Chilean stocks hovering around levels not seen since
October 2011. 
    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 by 5.3 percent, despite
President Dilma Rousseff's spokesman saying she had not
discussed the matter. 
    OGX Petroleo e Gas SA, the oil company of
Brazilian tycoon Eike Batista's tottering EBX Group, also saw
its shares rise 10 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 4.2 percent, while steelmakers Gerdau SA
 and Cia Siderurgica Nacional (CSN) rose
3.9, and 4.6 percent, respectively.
    Brazil's benchmark Bovespa stock index rose 1.97
percent to 51,397.66, its biggest gain in two weeks and nearly
erasing losses from the previous two sessions.
    Mexico's IPC index fell 1.09 percent to 41,007.43,
topping off its worst six-day stretch since late June. 
    Losses were led by bottling company Femsa,
whose shares fell 1.89 percent. 
    Mexico's Coca-Cola Femsa, a joint venture between
Femsa and Coca-Cola Co, said on Thursday it completed its
all-cash purchase of Brazilian Coke bottler Companhia Fluminense
de Refrigerantes. 
    Chile's IPSA index slumped for its seventh
consecutive session, dipping 0.12 percent to 3,616.15.
    
    Latin America's key stock indexes at 2251 GMT: 
 Stock indexes                      daily   YTD %
                        Latest          %  change
                                   change  
 MSCI LatAm              3,059.66   -0.18  -19.44
                                           
 Brazil Bovespa         51,397.66    1.97  -15.68
                                           
 Mexico IPC             41,007.43   -1.09   -6.17
                                           
 Chile IPSA              3,616.15   -0.12  -15.93
                                           
 Chile IGPA             17,974.42   -0.13  -14.69
                                           
 Argentina MerVal        3,943.48    2.36   38.16
                                           
 Colombia IGBC          13,669.12   -0.28   -7.11
                                           
 Peru IGRA              16,596.22   -0.11  -19.55
                                           
 Venezuela IBC        1,274,887.3   -1.41  170.43
                                4
FILED UNDER: