April 27, 2018 / 10:07 PM / a month ago

EMERGING MARKETS-Mexico, Brazil currencies gain; stocks mixed on earnings

 (Adds details on stock moves; updates prices)
    By Bruno Federowski
    BRASILIA, April 27 (Reuters) - Mexico's peso and Brazil's
real posted gains on Friday after mixed U.S. economic data drove
investors to pare back bets on a faster pace of U.S. interest
rate hikes, while corporate results drove big moves in some
stocks.
    The U.S. economy slowed in the first quarter as growth in
consumer spending braked sharply, though labor costs increased
more than expected in the period.
    "Consumer spending was weak, despite a strong overall
reading. We'll need more clues to justify the recent growth of
rate hike bets," said Mauriciano Cavalcante, the head of
currency trading at Ourominas.
    Emerging market currencies have slumped in recent weeks due
to expectations of accelerating inflation and a widening fiscal
deficit that could drive the U.S. Federal Reserve to accelerate
policy tightening. That would likely dampen demand for
high-yielding assets.
    The Mexican peso firmed 0.8 percent, while the
Brazilian real gained 0.4 percent.
    Brazil's and Mexico's benchmark stock indexes were little
changed, but shares of some companies made big moves following a
 batch of corporate updates.
    Shares in Mexican broadcaster Grupo Televisa
rose more than 4 percent after it reported stronger sales and
said it is considering spinning off assets, particularly its
cable division.
    Rival cable television provider Megacable 
jumped over 7 percent, its biggest one-day percentage gain in
five years, after its report beat expectations.  
    Mexico's Jose Cuervo, the world's largest
tequila producer, fell more than 6 percent after publishing
disappointing U.S. sales numbers. It was the stock's biggest
one-day loss since it listed early last year.
    Shares of Brazil's GPA SA jumped 3.95 percent
after the food retailer beat first-quarter profit estimates on
Thursday, fueled by a strong performance by its wholesale unit.

    Shares of Brazilian planemaker Embraer SA,
however, fell 2.6 percent after it reported a first-quarter
loss.
    
    Key Latin American stock indexes and currencies at 2100 GMT:
    
 Stock indexes                              daily %    YTD %
                                             change   change
                                  Latest             
 MSCI Emerging Markets             1156.30     1.05    -0.19
 MSCI LatAm                        3011.67     0.85     6.49
 Brazil Bovespa                   86444.66     0.07    13.14
 Mexico IPC                       48284.61    -0.03    -2.17
 Chile IPSA                        5690.48     0.19     2.26
 Chile IGPA                       28582.25     0.17     2.15
 Argentina MerVal                 30006.35     1.76    -0.20
 Colombia IGBC                    12421.57     1.23     9.24
 Venezuela IBC                    22380.01     5.24  1671.78
                                                            
 Currencies                                 daily %    YTD %
                                             change   change
                                                     
                                    Latest           
 Brazil real                        3.4614     0.42    -4.28
 Mexico peso                       18.6210     0.83     5.79
                                                     
 Chile peso                         607.05    -0.79     1.25
 Colombia peso                     2804.21     0.00     6.34
 Peru sol                            3.236     0.00     0.03
 Argentina peso (interbank)        20.5350     0.07    -9.42
                                                     
 Argentina peso (parallel)           20.83    -0.72    -7.68
                                                     
 
 (Reporting by Bruno Federowski; Additional reporting by Michael
O'Boyle in Mexico City; Editing by Dan Grebler)
  
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