February 21, 2019 / 3:07 PM / 3 months ago

EMERGING MARKETS-Brazil stocks little changed as earnings boost offset by energy; Latam FX dips

    Feb 21 (Reuters) - Stocks in Brazil received a modest boost
on Thursday from corporate earnings and with pension reforms in
focus but losses in the energy and material sector capped gains,
while Latin American currencies weakened against a steady U.S.
dollar. 
    Global equities held nerves with signs that the United
States and China were tackling some of the thorniest issues in
their trade war, boosting sentiment, but poor manufacturing
readings for the euro zone and lackluster data from the U.S.
limited advances.           
    Shares on the Bovespa index in Sao Paulo recovered
from an over 1 percent drop in the previous session as market
participants were still trying to understand the detailed text
of pension reforms presented to Congress on Wednesday. 
    Markets will now be watching out for the implementation time
frame and the capacity of the government to maintain as much of
the proposed original text as promised.
    "With the comprehensive proposal in hand, market focus
shifts to the timing of approval, as well as the potential
dilution size," XP Investimentos said in a note. 
    In earnings, Brazilian steelmaker Companhia Siderurgica
Nacional was the biggest gainer after it posted
stellar numbers for the fourth quarter by benefiting from higher
international prices amid a trade spat between the United States
and China.
    Fuel distributor Ultrapar's shares were among the
biggest drops on the index after it adjusted its earnings for
the fourth quarter, down 5.15 percent year on year.
    MSCI's index for currencies in the region
fell the most in over two months with Brazil's real
leading losses, down 0.9 percent and Chile's peso sliding
over 0.2 percent in line with a decline in the price of copper. 
    Mexico's peso just held through as oil prices 
hovered around 2019 highs on Thursday, bolstered by OPEC-led
supply cuts.
    
    Key Latin American stock indexes and currencies at 1440 GMT
    
 Stock indexes                             daily %
                               Latest       change
 MSCI Emerging Markets           1050.50      0.11
                                          
 MSCI LatAm                      2859.72      -0.8
                                          
 Brazil Bovespa                 96705.10      0.07
                                          
 Mexico IPC                            -         -
                                          
 Chile IPSA                      5402.49     -0.15
                                          
 Argentina MerVal                      -         -
                                          
 Colombia IGBC                         -         -
                                          
                                                  
 Currencies                                daily %
                                            change
                                  Latest  
 Brazil real                      3.7585     -0.83
                                          
 Mexico peso                     19.2167     -0.01
                                          
 Chile peso                          655     -0.34
                                          
 Colombia peso                   3112.47     -0.10
 Peru sol                          3.322     -0.12
                                          
 Argentina peso (interbank)      39.7000     -0.08
                                          
 
    
    

 (Reporting by Agamoni Ghosh; Additional reporting by Paula
Laier in Sao Paulo; Editing by Bernadette Baum)
  
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