December 5, 2017 / 3:13 PM / a year ago

EMERGING MARKETS-Brazil's Bovespa jumps as legislators organize behind pension bill

    SAO PAULO, Dec 5 (Reuters) - Brazil's benchmark Bovespa
index led gains among Latin American equities markets on
Tuesday, as the governing coalition appeared closer to gaining
the votes needed to pass a pension reform.
    The reform, seen as important to shoring up Brazil's fiscal
health, has been by far the dominant factor in the Bovespa's
performance for weeks.
    Late on Monday, Rodrigo Maia, the speaker of Brazil's lower
house, told journalists that President Michel Temer was still
far from assembling the coalition needed to pass the reform, but
potential supporters were now far more organized than last
    Earlier on Tuesday, congressmen in Temer's Brazilian
Democratic Movement Party (PMDB) decided to ask the party
leadership to formalize support for the measure, a source told
Reuters. Other parties, in particular the Brazilian Social
Democracy Party (PSDB), are expected to decide on a similar step
    "This is a day-to-day game and the position of the PSDB will
force other parties from the base to decide on formal support,"
analysts at Lerosa Investimentos wrote in a note to clients.
    Brazil's Bovespa index had shot up 0.82 percent by
midday, while the nation's real currency jumped 0.42
    As with a number of recent sessions, Chile's benchmark IPSA
index was the big loser as markets brace for a Dec. 17
second-round presidential vote, in which investor favorite
Sebastian Pinera will square off against center-left Alejandro
    Late on Monday, hard-left Beatriz Sanchez, who came in third
in the first round vote, formally endorsed Guillier, as the
country's left shows more unity than political analysts
initially anticipated.
    The IPSA had fallen 0.61 percent in midday trading,
while the nation's peso currency dropped 0.71 percent.
Key Latin American stock indexes and currencies at 1442 GMT:
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets           1117,82     -0,37     30,12
 MSCI LatAm                      2765,92      0,55     17,52
 Brazil Bovespa                 73689,61      0,82     22,35
 Mexico S&P/BVM IPC             47259,06      0,21      3,54
 Chile IPSA                      4983,83     -0,61     20,05
 Chile IGPA                     25087,94     -0,58     21,00
 Argentina MerVal               26885,95      0,19     58,92
 Colombia IGBC                  10806,08     -0,03      6,69
 Venezuela IBC                   1358,80     -3,61    -95,71
 Currencies                                daily %     YTD %
                                            change    change
 Brazil real                      3,2327      0,42      0,51
 Mexico peso                     18,7250     -0,59     10,78
 Chile peso                       652,35     -0,71      2,81
 Colombia peso                    3000,2     -0,41      0,04
 Peru sol                          3,235     -0,06      5,53
 Argentina peso (interbank)      17,3700     -0,06     -8,61
 Argentina peso (parallel)         18,04      0,17     -6,76

 (Reporting by Gram Slattery; Editing by Andrew Hay)
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