June 22, 2018 / 3:05 PM / 5 months ago

EMERGING MARKETS-Brazil's Bovespa rebounds as traders buy back in

    SAO PAULO, June 22 (Reuters) - Brazil's benchmark Bovespa
equities index roared back to life on Friday after
tanking almost 3 percent on Thursday as traders bought back into
stocks across sectors, seeking bargains amid relative global
calm and a solid day on Wall Street.
    Emerging markets worldwide have been hit hard in recent
months by fears of a global trade war, among other factors, with
the Bovespa among the big losers. Brazil has also been held back
by a number of domestic issues, including a truckers' strike
that nearly paralyzed the country's economy for 11 days in May.
    In recent weeks, investors have been jumping in and out of
Brazilian stocks, often spooked by domestic and international
political volatility but seeking bargains during periods of
relative geopolitical calm.
    On Friday, the pattern continued, with the Bovespa climbing
0.58 percent in morning trade, paring gains after rising over 1
percent earlier in the day. That came as Wall Street opened
higher, supported by financials and soaring oil prices. The
day's gains followed a 2.8 percent rout on the Bovespa on
Thursday.
    The biggest percentage gainer for much of the morning was
rental car company Localiza Rent a Car SA, whose
shares popped 4.6 percent after it announced on Thursday night
plans to buy back up to 43 million shares.
    Preferred and common shares in state-run oil company
Petroleo Brasileiro SA, known as Petrobras, climbed
1.9 percent and 1.7 percent, respectively, as OPEC agreed on
Friday to only modest increases in oil production from July,
sending prices higher. The rise in Petrobras shares came despite
a Brazilian labor court handing the company's employees a
victory in a $4.5 billion wage spat on Thursday evening.

    Elsewhere in the region, equities markets were generally up,
though gains were more modest than in Brazil.
    In currency markets, the Mexican peso climbed
almost 1 percent, after the country's central bank hiked its
benchmark interest rate 25 basis points to a more than nine-year
high of 7.75 percent on Thursday in a bid to keep a downward
inflation trend on track.
    
Key Latin American stock indexes and currencies at 1418 GMT:
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1087.99      0.72     -6.76
                                                  
 MSCI LatAm                    2437.30      1.26     -14.9
                                                  
 Brazil Bovespa               70480.50      0.58     -7.75
                                                  
 Mexico IPC                   46484.27      0.06     -5.82
                                                  
 Chile IPSA                    5402.56      0.32     -2.91
                                                  
 Chile IGPA                   27309.41      0.27     -2.40
                                                  
 Argentina MerVal             30869.35         0      2.67
                                                  
 Colombia IGBC                12124.98      0.45      6,63
                                                  
 Venezuela IBC                69914.59      1.17   5434,98
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.7616      0.00    -11.92
                                                  
 Mexico peso                   20.1275      0.99     -2.13
                                                  
 Chile peso                      637.1      0.35     -3.52
                                                  
 Colombia peso                 2908.85      1.40      2.51
 Peru sol                        3.265      0.28     -0.86
                                                  
 Argentina peso                27.3000      0.81    -31.87
 (interbank)                                      
                                                  
 Argentina peso                  27.95      0.18    -31.20
 (parallel)                                       
                                                  
 

 (Reporting by Gram Slattery; Editing by Dan Grebler)
  
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