EMERGING MARKETS-Latam stocks gain, currencies weaken after U.S. data

Tue Sep 2, 2014 2:02pm EDT

SAO PAULO, Sept 2 (Reuters) - Latin American currencies
mostly weakened while stocks edged higher on Tuesday after
encouraging U.S. manufacturing data strengthened the dollar and
stoked risk appetite.
    The MSCI Latin American stock index erased
the previous session's loss, with Brazil's Bovespa stock index
 adding nearly 1 percent.
    Data on Tuesday showed U.S. manufacturing activity increased
to its highest level in nearly 3-1/2 years in August, boosting
the outlook for global economic growth.
    Gains in the Bovespa were driven by some of the most
widely-traded stocks such as lender Itau Unibanco Holding SA
 and oil producer Petroleo Brasileiro SA,
known as Petrobras. Local shares with higher liquidity tend to
attract global investors and often track global risk appetite. 
    The Bovespa has swung on electoral polls in recent sessions,
and tends to rise when the likelihood of President Dilma
Rousseff winning a second term in October drops. New electoral
polls are expected to be released on Wednesday.
    Other stock indexes in the region also rose, with Chile's
IPSA driven by a nearly 2 percent gain in retailer
Falabella and Mexico's IPC boosted by
telecommunications firm America Movil.
    In currency markets, the Brazilian real weakened for
the second straight day.
    "It's the same old story," said Reginaldo Siaca, head of
currencies at brokerage Advanced in Sao Paulo. "Another round of
good data from the U.S. and the emerging market (currencies)
suffer."
    One exception was Chile's peso, which strengthened
slightly due to higher prices for copper, the country's
main export.
    Peru's nuevo sol was little changed. 
    Data on Monday showed inflation in Peru unexpectedly shrunk
by 0.09 percent in August on slipping electricity, fuel and
transportation prices.
    "Inflation's rapid fall has tipped the inflation-growth
trade-off now decidedly in favor of easing," wrote BNP Paribas 
economist Nader Nazmi in a client note on Tuesday. "We believe
the central bank will cut its policy rate by an additional 25
basis points to 3.50 percent at its Sept. 11 meeting."
    
    Key Latin American stock indexes and currencies at 1743 GMT:
    
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets           1086.46     -0.38      8.76
                                                    
 MSCI LatAm                      3672.96       0.4      14.3
                                                    
 Brazil Bovespa                 61707.21      0.93     19.80
                                                    
 Mexico IPC                     45639.14      0.44      6.82
                                                    
 Chile IPSA                      4053.64      1.04      9.58
                                                    
 Chile IGPA                     19647.71      0.88      7.79
                                                    
 Argentina MerVal              10026.989      0.81     85.99
                                                    
 Colombia IGBC                  14683.72     -0.06     12.34
                                                    
 Peru IGRA                      17013.87     -0.06      8.00
                                                    
 Venezuela IBC                   2621.55     -0.09     -4.20
                                                    
                                                            
 Currencies                                daily %     YTD %
                                            change    change
                                  Latest            
 Brazil real                      2.2448     -0.02      4.99
                                                    
 Mexico peso                     13.1092     -0.12     -0.60
                                                    
 Chile peso                          589      0.36    -10.68
                                                    
 Colombia peso                   1929.49     -0.52      0.13
 Peru sol                          2.852     -0.04     -2.07
                                                    
 Argentina peso (interbank)       8.4125     -0.06    -22.82
                                                    
 Argentina peso (parallel)         14.25     -0.35    -29.82
                                                    
 
 (Reporting by Bruno Federowski; Writing by Asher Levine;
editing by Andrew Hay)
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