July 24, 2018 / 2:53 PM / 25 days ago

EMERGING MARKETS-China stimulus, positive corporate news push up LatAm equities

    SAO PAULO, July 24 (Reuters) - Latin American equities rose
across the board on Tuesday after China announced dramatic
stimulus measures, with Brazil's benchmark Bovespa index leading
gains boosted by positive corporate news as well.
    On Monday, China announced it would pursue a more vigorous
fiscal policy to tackle external uncertainties, a shift that
means significant tax cuts in multiple industries.
    That sent stocks in both emerging and developed markets up,
with the S&P 500 rising about 0.7 percent in morning
trade and Chinese shares rising to a one-month
high.
    In Chile, a key exporter of copper to China, the benchmark
IPSA equities index climbed 0.64 percent in morning
trade, while the peso currency jumped 1.05 percent.
    Brazil was especially buoyant, as positive corporate news
flow and the China stimulus combined to push up the benchmark
Bovespa index 1.23 percent in morning trade, while the
real currency rose 1.01 percent.
    "China is the main reason for the relief coming from abroad,
after the government announced fiscal stimulus measures," said a
derivatives trader at a Sao Paulo brokerage.
    Shares in major iron ore miner Vale SA rose 4.5
percent after Moody's upgraded the firm, while Bradespar SA
, a holding company with a significant Vale stake,
rose 4.7 percent.
    Those two firms alone accounted for almost half of the
Bovespa's rise.
    Shares in Via Varejo SA, the country's largest
electronics retailer, climbed 4.1 percent after the company
announced a share conversion plan.
    Shares in state-run utility Centrais Eletricas Brasileiras
SA, commonly known as Eletrobras, rose 2.2 percent as
the company rallied before a long-awaited auction of a power
distribution unit scheduled for July 26.
    
Key Latin American stock indexes and currencies at 1425 GMT:
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1083.15      1.27     -7.68
                                                  
 MSCI LatAm                    2683.10       2.1     -7.08
                                                  
 Brazil Bovespa               78953.79      1.23      3.34
                                                  
 Mexico IPC                   49226.56      0.77     -0.26
                                                  
 Chile IPSA                    5442.17      0.64     -2.20
                                                  
 Chile IGPA                   27390.13      0.56     -2.11
                                                  
 Argentina MerVal             28100.36      1.43     -6.54
                                                  
 Colombia IGBC                12278.71      0.17      7,99
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.7446      1.01    -11.52
                                                  
 Mexico peso                   18.8650      0.12      4.42
                                                  
 Chile peso                      654.7      1.05     -6.12
                                                  
 Colombia peso                 2890.65      0.57      3.16
 Peru sol                        3.271      0.24     -1.04
                                                  
 Argentina peso                27.5300      0.33    -32.44
 (interbank)                                      
                                                  
 Argentina peso                  28.62      0.45    -32.81
 (parallel)                                       
                                                  
 

 (Reporting by Gram Slattery; Additional reporting by Claudia
Volante; Editing by Will Dunham)
  
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