June 4, 2018 / 3:28 PM / 13 days ago

EMERGING MARKETS-Brazil stocks up as Petrobras shares bounce back

    By Bruno Federowski
    BRASILIA, June 4 (Reuters) - Brazilian stocks rose on
Monday, propelled by rebounding shares of Petróleo Brasileiro SA
 after the appointment of a former top executive as
its chief executive reduced concerns of government meddling in
the state-owned oil company.
    Former Chief Financial Officer Ivan Monteiro will replace
Pedro Parente as head of Petrobras, as the company is known,
after Parente's surprise resignation last week over fuel pricing
policies.
    Petrobras shares rose as much as 8.5 percent on Monday,
adding the most points to Brazil's benchmark Bovespa stock index
 after tumbling 37 percent over the last two weeks amid
nationwide truckers' strikes against high diesel prices.
    Under Parente, Petrobras set local fuel prices in line with
global prices, ending years of costly subsidies that raised the
company's debt but also leaving consumers at the mercy of
volatility of crude markets.
    In a report, Credit Suisse analyst Regis Cardoso said
Monteiro was the best possible pick to push through with
Petrobras' turnaround, though doubts still linger over the
company's independence and its pricing policy. He maintained a
"neutral" recommendation on the stock.
    Shares of Cia Siderúrgica Nacional SA rose 9.1
percent after Credit Suisse analysts upgraded its recommendation
on the stock to "outperform" from "neutral," citing the
steelmaker's deleveraging efforts.
    Increased appetite for Brazilian assets helped to make the
Brazilian real the biggest gainer among Latin American
currencies, most of which were slightly stronger on Monday.
    A string of stronger-than-expected indicators on global
economic growth have rekindled demand for emerging market assets
in recent weeks after concerns of rising U.S. interest rates
drove a selloff in high-risk assets last month.
    Easing political tensions in Italy also contributed to
brightening investors' mood after political parties there took
steps to form a new government.    
    
    Key Latin American stock indexes and currencies at 1505 GMT:
 Stock indexes                               daily %    YTD %
                                              change   change
                                   Latest             
 MSCI Emerging Markets              1146.94     1.48    -2.44
 MSCI LatAm                         2602.85     1.33    -9.17
 Brazil Bovespa                    78576.16     1.73     2.85
 Mexico IPC                        45298.48     0.63    -8.22
 Chile IPSA                         5508.71     0.68    -1.00
 Chile IGPA                        27871.78      0.6    -0.39
 Argentina MerVal                  28986.07     1.93    -3.59
 Colombia IGBC                     12435.11     1.12     9.36
                                                             
 Currencies                                  daily %    YTD %
                                              change   change
                                                      
                                     Latest           
 Brazil real                         3.7427     0.62   -11.47
 Mexico peso                        19.9780    -0.12    -1.40
 Chile peso                           629.7     0.21    -2.39
 Colombia peso                      2859.76     0.23     4.27
 Peru sol                             3.272     0.00    -1.07
 Argentina peso (interbank)         24.9500     0.12   -25.45
                                                      
 Argentina peso (parallel)             25.9     0.39   -25.75
                                                      
 
 (Reporting by Bruno Federowski; Additional reporting by Paula
Laier in São Paulo)
  
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