January 22, 2014 / 4:10 PM / 3 years ago

EMERGING MARKETS-Brazil stocks up as concerns ease on China cash crunch

3 Min Read

* Brazil Bovespa up 1.3 pct, Mexico IPC flat

    SAO PAULO, Jan 22 (Reuters) - Brazilian stocks rallied on
Wednesday, driven higher by commodities and energy stocks, as
Beijing acted to eash a cash crunch in China, the top purchaser
of Brazilian exports.
     Both Mexico's IPC index and Chile's IPSA index
 were little changed.
    China's central bank helped cool concerns over rising
bank-to-bank borrowing costs by injecting over $12 billion of
cash into the market, helping lead China's CSI300 Index
, which tracks the largest companies in Shanghai and
Shenzhen, to a 2.58 percent jump on Wednesday. 
    Brazil's benchmark Bovespa stock index followed
suit, snapping a four-day losing streak, rising by 1.3 percent.
    Local stocks have swung widely in recent sessions as volume
remains low, with many investors cautious due to concerns over
economic growth in Latin America's largest economy.
    "The local market has been very 'difficult,' not showing a
consistent direction," BB Investimentos analysts wrote in an
investor note on Wednesday. "As the Brazilian index has been
tracking the Shanghai index, (China's gain) opens up some space
for a rebound."
    Shares of state-run oil company Petroleo Brasileiro SA
, known as Petrobras, rose 1.8 percent, while mining
firm Vale SA, which counts China as its biggest
customer, added 1 percent.
    Shares of airline Gol Linhas Aereas Inteligentes SA
 soared over 6 percent, their biggest rise since
mid-November. The company late on Tuesday said passenger revenue
per available seat rose by 24 percent in the fourth quarter
compared the same period in 2012. 
    Mexico's IPC index was nearly unchanged from
Tuesday's close, with a 2.2 percent gain in cement maker Cemex
 offsetting a 1.7 percent decline in conglomerate
    Chile's IPSA index was also little changed. 
    Shares of retailer Falabella fell 1.1 percent while
regional energy group Enersis added 0.8 percent.
    Latin America's key stock indexes at 1533 GMT:

 Stock indexes          Latest        daily %    YTD %
                                      change     change
 MSCI LatAm             3,047.53      0.84       -5.58
 Brazil Bovespa         49,175.48     1.3        -4.53
 Mexico IPC             41,859.29     0.05       -2.03
 Chile IPSA             3,677.59      -0.06      -0.58
 Chile IGPA             18,156.44     -0.08      -0.39
 Argentina MerVal       5,864.02      0.4        8.77
 Colombia IGBC          12,526.61     0.05       -4.17
 Peru IGRA              16,526.22     -0.02      4.90
 Venezuela IBC          2,827.97      0.68       -99.90

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