SAO PAULO, Sept 2 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)
One exception was Chile's peso, which strengthened
slightly due to higher prices for copper, the country's
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
"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 %
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)