EMERGING MARKETS-Latam markets gain on Ukraine; Bovespa down on profit-taking

Wed Sep 3, 2014 1:47pm EDT

SAO PAULO, Sept 3 (Reuters) - Most Latin American currencies
and stocks gained on Wednesday, fed by mounting risk appetite
after Ukraine and Russia took steps towards peace, though
Brazilian stocks pared back on profit-taking.
    The MSCI Latin American stock index rose for
the third session in four, reaching its highest level in over 15
months before meeting technical resistance near 3,720 points.
    Ukraine said on Wednesday its president had agreed with
Russia's Vladimir Putin on steps towards a "ceasefire regime" in
Kiev's conflict with pro-Russian rebels. Hope for peace helped
drive global stock markets higher, though the Kremlin denied any
actual truce deal. 
    Mexico's IPC stock index edged higher. Shares of
retailer Wal-Mart de Mexico added about 1 percent
after the company said its same-store sales rose 3.5 percent in
August from a year earlier, the best reading of the year so far.
    Chile's IPSA index rallied for a fourth day. 
    Chile's central bank cut its 2014 growth forecast to a range
of 1.75 percent to 2.25 percent from a prior view of 2.5 percent
to 3.5 percent on Wednesday as domestic demand growth slides
almost to a halt. It said a weaker peso and lower interest rates
would help support a recovery in 2015. 
    Brazil's benchmark Bovespa stock index fell back
slightly as investors took profits in widely-traded shares such
as state-run oil producer Petroleo Brasileiro SA and
lender Itau Unibanco Holding SA.
    The index has struggled to break technical resistance near
62,300 points in every session this week.
    In currency markets, the Mexican and Colombian pesos
  both strengthened, while the Chilean peso 
was held in neutral territory, weighed down by lower prices for
copper, the country's main export. 
    The Brazilian real strengthened for the sixth session
in seven, with investors increasing bets that President Dilma
Rousseff will lose her bid for re-election in October to a more
market-friendly challenger.
    A Reuters poll on Wednesday showed that the real is set to
weaken over the next year on prospects of higher interest rates
in the United States, though a Rousseff loss could soften the
currency's drop. 
    The poll also showed Mexican currency trading at 12.75 per
dollar in 12 months, up 3 percent from Tuesday's close, on
prospects of a heavy flow of foreign investments in oil
production after a recently approved reform in the country's
energy sector. 
    
    Key Latin American stock indexes and currencies at 1711 GMT:
    
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets           1100.04      1.22      8.38
                                                    
 MSCI LatAm                      3685.45      0.37     14.71
                                                    
 Brazil Bovespa                 61359.26     -0.87     19.13
                                                    
 Mexico IPC                     45940.86      0.25      7.52
                                                    
 Chile IPSA                      4087.51       0.8     10.50
                                                    
 Chile IGPA                     19784.27      0.67      8.54
                                                    
 Argentina MerVal              10361.329      2.42     92.20
                                                    
 Colombia IGBC                  14662.01     -0.14     12.17
                                                    
 Peru IGRA                       17118.8      0.62      8.67
                                                    
 Venezuela IBC                   2624.16       0.1     -4.11
                                                    
                                                            
 Currencies                                daily %     YTD %
                                            change    change
                                  Latest            
 Brazil real                      2.2322      0.33      5.58
                                                    
 Mexico peso                     13.0848      0.17     -0.42
                                                    
 Chile peso                        588.8      0.03    -10.65
                                                    
 Colombia peso                   1923.75      0.38      0.43
 Peru sol                           2.85     -0.14     -2.00
                                                    
 Argentina peso (interbank)       8.4150     -0.06    -22.85
                                                    
 Argentina peso (parallel)         14.22      0.21    -29.68
                                                    
 
 (Reporting by Asher Levine; editing by Andrew Hay)