October 27, 2017 / 9:36 PM / a year ago

EMERGING MARKETS-LatAm currencies up on hopes of dovish Fed chair

 (Updates prices)
    By Bruno Federowski
    SAO PAULO, Oct 27 (Reuters) - Most Latin American currencies
strengthened on Friday on a report that U.S. President Donald
Trump was leaning toward Federal Reserve Governor Jerome Powell
as his pick to head the U.S. central bank.
    The report, published by Bloomberg News, fostered
expectations that U.S. interest rates might take longer to rise
in coming months than previously anticipated, supporting demand
for high-yielding emerging market assets.
    Powell is seen as more dovish than alternative candidates
John Taylor, a Stanford University economist, and former Fed
Governor Kevin Warsh.
    The Mexican peso firmed 0.25 percent, while the
Colombian peso strengthened 0.17 percent. 
    The Brazilian real rose 1.26 percent as investors
turned to bargain-hunting the day after it hit a more than
four-month low.
    Still, investors remained concerned about whether President
Michel Temer can pass important legislation, such as
streamlining the nation's costly social security system.
    A batch of strong corporate earnings helped lift the
benchmark Bovespa stock index, with gains in shares of
drugstore chain Raia Drogasil SA, wood pulpmaker
Suzano Papel e Celulose SA and GPA SA.
    Shares of state-controlled oil company Petróleo Brasileiro
SA were also boosted by rising crude prices.
Petrobras, as the company is known, was part of three
consortiums winning blocks in Brazil's coveted pre-salt oil
region in an auction on Friday.

    Mexico's stock market climbed for the second straight day,
helped by gains in bank Banorte and retailer Fomento Economico
Mexicano (Femsa). Earlier this week, the market sunk to its
lowest level since late June as companies reported their
third-quarter results.
    Jose Antonio Meade, Mexico's finance minister, on Friday
attributed the peso's fluctuations to the global strengthening
of the dollar. 
    Key Latin American stock indexes and currencies at 2005 GMT:
 Stock indexes                                daily %  YTD %
                                               change  chang
                                   Latest                  e
 MSCI Emerging Markets               1113.00     0.44  28.52
 MSCI LatAm                          2873.84      0.5  22.17
 Brazil Bovespa                     76143.48     0.33  26.43
 Mexico IPC                         49234.16      0.5   7.87
 Chile IPSA                          5516.45     0.39  32.88
 Chile IGPA                         27657.71     0.33  33.39
 Argentina MerVal                   27493.25    -1.21  62.51
 Colombia IGBC                      10761.17    -2.24   6.25
 Venezuela IBC                        708.93    -1.11  -97.7
 Currencies                                   daily %  YTD %
                                               change  chang
                                      Latest               e
 Brazil real                          3.2430     1.26   0.19
 Mexico peso                         19.1625     0.25   8.25
 Chile peso                            633.8     0.00   5.82
 Colombia peso                          3010     0.17  -0.28
 Peru sol                              3.246    -0.18   5.18
 Argentina peso (interbank)          17.5950     0.43  -9.78
 Argentina peso (parallel)             18.07     0.06  -6.92
 (Reporting by Gabriel Stargardter; Editing by Sandra Maler)
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