* Mexican Peso, Brazilian real, Chilean peso gain
* Mexican peso shrugs off weak U.S. manufacturing data
By Jeb Blount
RIO DE JANEIRO, Aug 15 Latin American
currencies gained against the U.S. dollar on Monday as rising
world stocks eased concern about global growth and raised
expectations that declines in emerging market assets may be
The MSCI all country world stock index .MIWD00000PUS rose
for a third day, gaining 4.45 percent to hit its highest level
in more than a week. The Dow Jones industrial average .DJI,
frequently a bellwether for Latin American currencies, also
rose, adding 0.95 percent.
The gains show that some investors are less concerned that
sovereign default risk in Europe and sluggish growth in the
United States will derail the world economy, said Newton Rosa,
chief economist at Sul America Investimentos in Sao Paulo.
"In the last few days we've seen the probability of a world
financial crisis decline and that's animated the markets," Rosa
said. "There's been an alteration in the world view, and while
we can't be sure if it will hold, this is helping prices."
Brazil's real BRBY strengthened 1.09 percent to 1.5932 to
the dollar, firming below 1.60 to the dollar for the first time
in three days.
Mexico's peso MXN=D2 gained 0.4 percent to 12.2462 to the
The peso and U.S. stock markets gained even as new data out
of the United States, which represents about 80 percent of
Mexican export earnings, showed the economy weakening.
Manufacturing activity fell in New York State, the
third-largest U.S. state economy, for a third month in August.
The New York Federal Reserve Bank's Empire Index fell to
negative 7.72 from minus 3.76 in July.
"The market has largely overlooked that bad news," said
Eduardo Avila, an analyst at brokerage Monex in Mexico City.
"We are more focused on U.S. corporate news and the stock
U.S. stocks rose on merger and acquisition deals, including
Google Inc's (GOOG.O) planned $12.5 billion purchase of
Motorola Mobility Holdings (MMI.N), and speculation that
European leaders may get control of the euro zone's debt
"The corporate news shows a strong outlook for the U.S.,"
Some Mexican debt also rallied, causing yields on the
government's benchmark 10-year bond MX10YT=RR to slide 3
basis points to 6.10 percent.
Elsewhere in Latin America, Chile's peso CLP=CL gained
0.1 percent to 470.50 to the dollar. Peru's sol PEN=PE was
little changed at 2.7410 to the dollar.
Argentina's official peso ARS=RASL was little changed at
4.1575 to the dollar. The unofficial, "parallel" peso ARSB=
firmed 0.4 percent to 4.3287 to the dollar.
(Additional reporting by Michael O'Boyle in Mexico City;
Editing by Andrew Hay and Leslie Adler)