January 29, 2019 / 9:40 PM / 25 days ago

EMERGING MARKETS-Latam shares rise, FX firm against steady dollar

 (Recasts throughout, updates prices)
    By Susan Mathew
    Jan 29 (Reuters) - Latin American stocks rose on Tuesday,
outperforming world stocks that struggled to hold gains ahead of
keenly awaited U.S.-Sino trade talks, earnings of top technology
companies and an impending U.S. Federal Reserve decision on
interest rates.
    Brazil shares rose 0.2 percent buoyed by shares of state run
firms after the country's secretary of privatization said
President Jair Bolsonaro's government wants to sell at least $20
billion in assets of state-owned companies this year.

    While shares of power company Centrais Eletricas Brasileiras
 were the top performers, shares of oil
firm Petrobras and lender Banco do Brasil
 were the biggest boosts to the benchmark Bovespa
stock index. 
    Iron ore miner Vale SA rose 0.9 percent,
recovering from Monday's near 25 percent dive after a burst
tailing dam left hundreds feared dead.
    Regis Chinchila, an analyst at Terra Investimentos expects
the Bovespa to hit 100,000 in February or March. The index
closed Tuesday at 95,639.33. 
    In Argentina, locally listed shares of Brazil's Petrobras
 were among the top gainers on the benchmark Merval
index which stayed near all-time highs on broad-based
gains. Other energy shares on the benchmark such as YPF
 rose thanks to higher oil prices.
    Bourses in Mexico and Colombia also rose
helping the MSCI index of Latin American shares
reverse last session's losses and rise 0.8 percent. Chilean
shares fell, dragged down by consumer stocks.
    Globally, sentiment remained cautious ahead of top level
trade talks between China and United States set to begin on
Wednesday amid heightened tensions between the two counties
after U.S. officials announced criminal charges against Chinese
telecom giant Huawei for violating U.S. sanctions against Iran.

    Currencies of most Latin American economies firmed against a
steady dollar as the greenback awaited results of the U.S.
central bank meeting scheduled to end on Wednesday with
investors expecting the Fed to show a more cautious stance.

    "The stability of the exchange rate is due to the fact that
market participants are waiting for several key events in the
coming days," analysts at Banco Base said pointing to the Fed
meeting, trade talks and economic growth and jobs data from the
United States as key events. 
    Brazil's real rose more than 1 percent to a two week
high as the over 20 percent plunge in Vale on Monday attracted
foreign investors, who sought to take advantage of its
devaluation, said Ricardo Gomes da Silva Filho, an exchange
trader at Correparti Corretora.
    Oil prices helped currencies of next crude exporters Mexico
 and Colombia, while Chile's peso tracked
copper prices higher. Argentina's currency, however,
weakened more than 1 percent.

    Key Latin American stock indexes and currencies at 2121 GMT:
    Stock indexes             Latest    Daily %
                                         change
 MSCI Emerging Markets         1029.75      0.16
                                        
 MSCI LatAm                    2856.63       0.8
                                        
 Brazil Bovespa               95639.33       0.2
                                        
 Mexico IPC                   43702.67      0.18
                                        
 Chile IPSA                    5415.76     -0.55
                                        
 Argentina MerVal             35511.21      1.92
                                        
 Colombia IGBC                11808.49      0.49
                                        
                                                
       Currencies             Latest    Daily %
                                         change
 Brazil real                    3.7203      0.01
                                        
 Mexico peso                   19.0104      0.15
                                        
 Chile peso                     666.81      0.55
                                        
 Colombia peso                  3152.6      0.12
 Peru sol                        3.356      0.06
                                        
 Argentina peso                37.6200     -1.25
 (interbank)                            
                                        
 

 (Reporting by Susan Mathew in Bengaluru;; editing by Diane
Craft)
  
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