March 26, 2019 / 3:09 PM / 5 months ago

EMERGING MARKETS-Latam stocks rise as global equities stabilize; FX slumps

    By Agamoni Ghosh
    March 26 (Reuters) - Latin American stocks rose on Tuesday,
tracking global equities as riskier assets showed signs of
stability after U.S. benchmark bond yields rose, while
currencies in the region slipped against a firm dollar.
    Investors had ditched equities to run to the safety of bonds
 after weak European and U.S. data last Friday stoked global
growth fears, causing the U.S. yield curve to invert, seen by
some as a reliable indicator of a possible recession. 
    MSCI's index of Latin American stocks rose
0.4 percent as indices edged higher across the region in-line
with its emerging market peers. 
    Sao Paulo-traded stocks rose 0.8 percent led by
shares of energy companies lifted by higher oil prices, while
investors continued to monitor for any new developments related
to the pension reform. 
    Brazil's real fell 0.4 percent. Minutes of the
central bank's last policy meeting showed economic growth has
slowed more than anticipated this year, suggesting policymakers
are in no rush to raise interest rates.
    "For the BCB to start mulling rate cuts, it would probably
have to see a clearer signal about the passing of key fiscal
reforms, such as a first round approval of an effective pension
reform at the Lower House floor," said Mauricio Oreng, senior
Brazil strategist at Rabobank in a note.    
    Mexican stocks rose 0.6 percent with Grupo Mexico
 leading gains after Morgan Stanley upgraded the
stock to "equal-weight," while the peso slid 0.3 percent.
    Chile's peso rose marginally tracking a slight gain
in the price of copper, the country's top export. 
    Chile's central bank is expected to hold its benchmark
interest rate at 3 percent through 2019, according to a monthly
poll of 60 traders published by the bank on Tuesday.

    Key Latin American stock indexes and currencies at 1455 GMT
 Stock indexes                        daily %
                             Latest    change
 MSCI Emerging Markets       1050.44     0.26
 MSCI LatAm                  2745.01     0.46
 Brazil Bovespa             94408.41      0.8
 Mexico IPC                 42984.82     0.66
 Chile IPSA                  5195.76     0.04
 Argentina MerVal           33747.55     1.75
 Colombia IGBC              13187.13      0.9
 Currencies                           daily %
 Brazil real                  3.8714    -0.39
 Mexico peso                 19.0686    -0.29
 Chile peso                    678.7     0.16
 Colombia peso               3144.38    -0.56
 Peru sol                        3.3     0.06
 Argentina peso              42.1500    -0.17

 (Reporting by Agamoni Ghosh
Editing by Marguerita Choy)
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