March 12, 2018 / 9:29 PM / 2 months ago

EMERGING MARKETS-Brazil stocks up; Fibria shares jump on M&A reports

 (Updates prices)
    By Bruno Federowski
    BRASILIA, March 12 (Reuters) - Brazilian stocks rose on
Monday as reports that Paper Excellence made a formal bid to
acquire Fibria SA propped up shares in the Brazilian
wood pulp producer.
    Paper Excellence's bid values Fibria at 40 billion reais,
three people with direct knowledge of the matter told Reuters.
Fibria shares jumped 2.95 percent to an all-time high.

    Shares of Suzano Papel e Celulose SA, which is
also negotiating a tie-up with Fibria, dropped 4.45 percent. The
benchmark Bovespa stock index rose 0.61 percent.
    Also helping to drive equity markets higher, shares of JBS
SA rose over 4 percent as bargain-hunting lifted
shares of food processors for a second straight day.
    The sector suffered large losses earlier this month after
Brazilian police unveiled a probe into suspected fraud to evade
food safety checks at BRF SA, the world's largest
poultry exporter.
   More widely, most Latin American stock and currency markets
were range-bound as traders awaited further developments of U.S.
President Donald Trump's protectionist plans, after he slapped
tariffs on steel and aluminum imports.
    How such policies will affect emerging market currencies is
not yet clear. While higher prices of imported goods could stoke
inflation and drive interest rates higher, they could also
weaken the ongoing economic recovery.
    
    Latin American stock indexes and currencies at 2121 GMT:
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1222.20      1.24       5.5
                                                  
 MSCI LatAm                    3129.38      0.06     10.65
                                                  
 Brazil Bovespa               86900.43      0.61     13.74
                                                  
 Mexico IPC                   48671.29      0.24     -1.38
                                                  
 Chile IPSA                    5653.42      0.29      1.60
                                                  
 Chile IGPA                   28259.19      0.22      1.00
                                                  
 Argentina MerVal             33243.97      0.18     10.57
                                                  
 Colombia IGBC                11471.47     -0.25      0.89
                                                  
 Venezuela IBC                 5379.54      5.06    -83.03
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.2614     -0.18      1.59
                                                  
 Mexico peso                   18.5915      0.10      5.96
                                                  
 Chile peso                      603.5     -0.31      1.85
                                                  
 Colombia peso                    2845      0.73      4.82
 Peru sol                         3.26     -0.06     -0.71
                                                  
 Argentina peso                20.1950      0.27     -7.90
 (interbank)                                      
                                                  
 Argentina peso                  20.64     -0.15     -6.83
 (parallel)                                       
                                                  
 
 (Reporting by Bruno Federowski; editing by Grant McCool and
Jonathan Oatis)
  
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