September 18, 2018 / 3:35 PM / 9 months ago

EMERGING MARKETS-Brazil's Bovespa boosted by spike in commodities prices

    SAO PAULO, Sept 18 (Reuters) - Brazil's benchmark Bovespa
index rose more than 1 percent on Tuesday, rallying for
a second straight day largely on the back of a spike in
commodities prices. 
    Two of Bovespa's most heavily-weighted equities, miner Vale
 and oil giant Petroleo Brasileiro SA, commonly known
as Petrobras, benefited from rising commodity prices
worldwide amid escalating China-U.S. trade tensions and signals
OPEC is not prepared to raise output prices to address shrinking
supplies from Iran.
    Both stocks were up more than 2 percent in late morning
trade, accounting for well over half of the Bovespa's rise.
    With three weeks to go before the first round of Brazil's
presidential election, the market was awaiting a new poll set to
be released by Ibope after markets close. The results could
affect markets, particularly if they show left-wing candidate
Fernando Haddad's candidacy has continued to gain support. 
    Geraldo Alckmin, the favorite of financial markets, is no
longer considered likely to secure a spot in the run-off likely
to occur later in October, making far-right candidate Jair
Bolsonaro increasingly the default choice for investors. 
    "There's disbelief that Alckmin can move up, and the market
is betting on Bolsonaro," Brazilian broker Spinelli said in a
note to clients. 
    Throughout the region, currencies were up modestly against
the dollar, except in Brazil and Argentina,
where they were down slightly. Brazil's real and Argentina's
peso have posted by far the biggest losses in the region this
year, despite initial hopes the two countries would experience
significant economic recoveries in 2018.
    Key Latin American stock indexes and currencies at 14:45
 Stock                        Latest     daily %  YTD % change
   indexes                               change   
 MSCI Emerging Markets        1016,43    -1,18    -12,26
 MSCI LatAm                   2463,49    1,15     -12,89
 Brazil Bovespa               77633,29   1,1      1,61
 Mexico IPC                   49648,30   0,51     0,60
 Argentina MerVal             31564,14   1,31     4,98
 Colombia IGBC                12353,02   0,68     8,64
 Venezuela IBC                355090,66  0,96     28011,74
 Currencies                   Latest     daily %  YTD % change
 Brazil real                  4,1348     -0,25    -19,87
 Mexico peso                  18,776     0,33     4,92
 Chile peso                   686,8      0,00     -10,51
 Colombia peso                3003,25    0,44     -0,71
 Peru sol                     3,303      0,24     -2,00
 Argentina peso (interbank)   39,7000    -0,33    -53,15
 Argentina peso (parallel)    40         0,00     -51,93

 (Reporting by Marcelo Rochabrun and Paula Arend Laier
Editing by Paul Simao)
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