April 10, 2018 / 4:18 PM / 14 days ago

EMERGING MARKETS-Latin American equities jump as China signals openness

    SAO PAULO, April 10 (Reuters) - Latin American markets rose
on Tuesday, following a rally on Wall Street after Chinese
Premier Xi Jinping promised to open up China's economy, easing
concerns about trade tensions with the United States and their
potential impact on the world economy.
    In a speech, Xi said China will widen market access to
foreign investors, appearing to address recurring complaints by
U.S. President Donald Trump. Among the measures China would
take, he said, was raising foreign ownership limits in the
automobile, shipbuilding and aircraft sectors.
    Xi's comments followed statements by Trump on Monday that
were also considered conciliatory. During a cabinet meeting, the
U.S. president said the United States would "probably" reach a
deal with China including tax reciprocity and intellectual
property protections.
    The softer rhetoric between the United States and China sent
both the benchmark U.S. S&P 500 stock index and the Dow
Jones about 2 percent higher. 
    In Latin America, Brazil's benchmark Bovespa index
climbed 1.05 percent, Mexico's IPC rose 0.77 percent, and
Argentina's Merval rose 0.8 percent.
    "That optimism is coming from the Xi Jingping speech
itself," said Jason Vieira, chief economist at Infinity Asset
Management in Sao Paulo.
    The biggest gainer on the Bovespa was Marfrig Global Foods
SA, whose shares climbed 15 percent on Tuesday. The
stock had jumped almost 20 percent on Monday when it announced
plans to acquire U.S.-based National Beef Packing Co for $969
million, making it the world's No. 2 beef processor.

    Shares in planemaker Embraer SA climbed 5 percent
after news reports that negotiations regarding a possible tie-up
with Boeing Co were advancing well.
    Hypera SA, Brazil's largest listed producer of
over-the-counter medicines, posted the only significant loss on
the index, with shares falling 5 percent after Brazilian police
searched the company's offices amid a corruption probe involving
a former executive.
    
Key Latin American stock indexes and currencies at 1539 GMT:
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1174.60      0.99       0.4
                                                  
 MSCI LatAm                    3015.28      0.55      6.04
                                                  
 Brazil Bovespa               84170.95      1.04     10.17
                                                  
 Mexico IPC                   48435.37      0.78     -1.86
                                                  
 Chile IPSA                    5609.90      0.28      0.81
                                                  
 Chile IGPA                   28087.33      0.27      0.38
                                                  
 Argentina MerVal             32127.08      0.89      6.86
                                                  
 Colombia IGBC                12064.76      0.88      6.10
                                                  
 Venezuela IBC                 7610.27     18.29    502.49
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.4093      0.34     -2.82
                                                  
 Mexico peso                   18.2770      0.39      7.78
                                                  
 Chile peso                      601.4      0.42      2.20
                                                  
 Colombia peso                 2763.73      0.41      7.90
 Peru sol                        3.238     -0.03     -0.03
                                                  
 Argentina peso                20.1900      0.01     -7.88
 (interbank)                                      
                                                  
 Argentina peso                  20.38      0.64     -5.64
 (parallel)                                       
                                                  
 

 (Reporting by Gram Slattery and Gabriela Mello; Editing by
Bernadette Baum)
  
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