October 28, 2019 / 2:41 PM / 18 days ago

EMERGING MARKETS-Trade optimism lifts Latam assets, currency controls buoy Argentine peso

    By Agamoni Ghosh
    Oct 28 (Reuters) - Latin American assets started the week on
a positive footing on Monday buoyed by U.S.-China trade
optimism, while Argentina's peso rose after the central bank
imposed currency controls following a win by leftists at the
center. 
    MSCI's index of Latin American stocks rose
1% boosted by gains in index heavyweight Brazil. 
    U.S. President Donald Trump said on Monday he expected to
sign a significant part of an interim trade deal with China
ahead of schedule but did not elaborate on the timing.

    "Its a classic risk on day with equities shining and
emerging assets getting a boost," said Christian Lawrence,
Senior FX strategist at Rabobank.   
    Most Latam currencies climbed higher against a tepid dollar
led by Brazil's real. 
    Argentina's peso up 0.4% after its central bank
imposed currency controls as Peronists swept back into power on
Sunday ousting conservative president Mauricio Macri.    

    The peso however, fell about 1.9% in black market trading,
underscoring a loss of trust in the official price.
    The election result, which was largely on expected lines,
shifts Latin America's third-largest economy firmly back toward
the left after it was battered by economic crisis. 
   "We knew this was going to be the outcome and there wasn't
much of a shock as such," said Lawrence. "Some sort of debt
restructuring will be on the cards but don't think anyone has a
rock solid view of what's going to happen." 
    Latin American stock indexes and currencies at 14:28 GMT
   
 Stock indexes                             daily % change
                           Latest          
 MSCI Emerging Markets            1043.50            0.74
                                           
 MSCI LatAm                       2826.02            1.18
                                           
 Brazil Bovespa                 107791.01             0.4
                                           
 Mexico IPC                      43521.05             0.3
                                           
 Chile IPSA                       4957.60            0.28
                                           
 Argentina MerVal                35579.88           3.064
                                           
 Colombia IGBC                   13263.81            0.23
                                           
                                                         
 Currencies                                daily % change
                                   Latest  
 Brazil real                       3.9794            0.74
                                           
 Mexico peso                      19.0184            0.18
                                           
 Chile peso                           724            0.35
                                           
 Colombia peso                     3376.8            0.51
 Peru sol                           3.332            0.09
                                           
 Argentina peso                   58.0000            3.43
 (interbank)                               
                                           
 

 (Reporting by Agamoni Ghosh
Editing by Chizu Nomiyama)
  
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