(Updates prices)
By Bruno Federowski
SAO PAULO, March 26 (Reuters) - Latin American currencies
strengthened on Monday on growing optimism that the United
States and China will soon begin negotiations on trade, easing
fears of a global trade war.
The move tracked a surge in global appetite for high-risk
assets in the wake of a Wall Street Journal report that U.S.
Treasury Secretary Steven Mnuchin was considering a visit to
Beijing to begin negotiations.
Currencies in Latin America followed along, with Mexico's
peso hitting a six-month high against the U.S. dollar
on hopes that the United States could also strike a more
constructive tone in negotiations over the North American Free
Trade Agreement (NAFTA). The Mexican peso closed the session up
more than 1 percent, while the Brazilian real gained nearly 0.5
percent.
"The market believes that the so-called trade war is all
bark and no bite," economists at Continuum Economics wrote in a
client note. "The mood regarding NAFTA should brighten again."
However, analysts also warned that significant advances will
be necessary in the eighth round of NAFTA talks scheduled for
April for the peso to hold its gains.
Mexico's S&P/BMV IPC stock index rose 0.74 percent, largely
pushed by retail giant Wal-Mart de Mexico, whose
shares rose nearly 3 percent.
Brazil's Bovespa climbed nearly 1 percent. Miners
and steelmakers ranked among the largest gainers, with Brazil's
Gerdau SA and Usinas Siderúrgicas de Minas Gerais SA
both rising. Shares in mining giant Vale <VALE3.SA
increased nearly 1 percent despite a decline in China-listed
iron ore futures, largely boosting the index.
Key Latin American stock indexes and currencies at 2120 GMT:
Stock indexes Latest daily % change YTD % change
MSCI Emerging 1182.28 0.87 2.06
Markets
MSCI LatAm 3035.50 1.14 7.33
Brazil Bovespa 85087.86 0.84 11.37
Mexico IPC 46858.46 0.74 -5.06
Chile IPSA 5446.77 -0.79 -2.12
Chile IGPA 27327.55 -0.74 -2.33
Argentina MerVal 31636.56 0.56 5.23
Colombia IGBC 11511.64 0.9 1.24
Venezuela IBC 5817.24 4.24 -81.65
Currencies Latest daily % change YTD % change
Brazil real 3.3105 -0.24 0.08
Mexico peso 18.3550 -0.08 7.32
Chile peso 604.4 0.48 1.70
Colombia peso 2801.3 -0.02 6.45
Peru sol 3.216 0.19 0.65
Argentina peso 20.1800 0.05 -7.83
(interbank)
Argentina peso 20.83 0.53 -7.68
(parallel)
(Reporting by Bruno Federowski in Sao Paulo and Daina Beth
Solomon in Mexico City
Editing by James Dalgleish and Cynthia Osterman)