January 19, 2018 / 11:20 PM / 3 months ago

EMERGING MARKETS-Brazil stocks hold near all-time highs; Argentina stocks fall

 (Updates prices)
    By Bruno Federowski
    BRASILIA, Jan 19 (Reuters) - Brazilian stocks hovered near
all-time highs on Friday as optimism over the country's economic
prospects sustained demand for local assets, while hopes of a
tie-up with Boeing Co boosted shares of Embraer SA
.
    The benchmark Bovespa stock index rose 0.32 percent,
hitting an intraday record of 81,429. The bourse was supported
by blue chips such as lenders Banco Bradesco SA and
Itaú Unibanco Holding SA.
    Emerging markets kicked off the year with a rally as several
reports showing strong economic growth worldwide fostered
appetite for high-yielding assets. Brazil's stock market
outperformed, supported by expectations that policymakers will
plug a budget gap and rein in runaway public debt.
    Embraer shares also advanced on Friday, as traders bet the
planemaker could strike a deal with Boeing to help face down a
partnership between rivals Bombardier Inc and Airbus
SE.
    Reuters reported late on Thursday that Boeing was working to
overcome the Brazilian military's objections to its proposed
tie-up with Embraer with alternatives that would preserve the
government's strategic veto rights and ensure safeguards for its
defense programs.
    Argentina's  Merval index fell 1.3 percent after
hitting an all-time high on Thursday. Argentina's stock market
is up nearly 12 percent so far this year, benefiting from
foreign capital inflows, as high liquidity abroad has combined
with a favorable political outlook for Argentina.
    Latin American currencies were little changed as heightened
fears of a U.S. government shutdown unnerved investors. 
    Legislation to stave off an imminent shutdown hit obstacles
in the U.S. Senate, despite the passage of a month-long funding
bill by the House of Representatives. 
    Without the injection of new money, no matter how temporary,
scores of federal agencies will be forced to close at midnight
on Friday, when existing funds expire.
    Key Latin American stock indexes and currencies at 2300 GMT:
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1233.01      0.45      5.96
                                                  
 MSCI LatAm                    3078.37      0.38      8.43
                                                  
 Brazil Bovespa               81219.50      0.32      6.31
                                                  
 Mexico IPC                   49696.37     -0.43      0.69
                                                  
 Chile IPSA                    5856.27      0.29      5.24
                                                  
 Chile IGPA                   29402.17      0.29      5.08
                                                  
 Argentina MerVal             33600.73     -1.32     11.76
                                                  
 Colombia IGBC                11867.45     -0.11      4.37
                                                  
 Venezuela IBC                 2338.65      1.43     85.15
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.1946      0.19      3.72
                                                  
 Mexico peso                   18.6095     -0.06      5.85
                                                  
 Chile peso                     608.44     -0.58      1.02
                                                  
 Colombia peso                 2849.25     -0.20      4.66
 Peru sol                        3.216     -0.06      0.65
                                                  
 Argentina peso                18.9900     -0.61     -2.05
 (interbank)                                      
                                                  
 Argentina peso                  19.64      0.00     -2.09
 (parallel)                                       
                                                  
 
 (Reporting by Bruno Federowski; Editing by James Dalgleish)
  
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