April 16, 2019 / 3:07 PM / 2 months ago

EMERGING MARKETS-Latam shares track global rally, currencies weaken

    By Susan Mathew
    April 16 (Reuters) - Latin American currencies weakened
against a firmer dollar on Tuesday, while most regional stocks
rose in line with world stocks as gains on positive data from
China and Germany were reinforced by Wall Street's higher open.
    Mexico's IPC stock index climbed half a percent on
broad-based gains, while Chile's IPSA rose for the
first time in five days. Argentine shares added 1.6
percent and were on track for their biggest one-day gain in more
than two weeks.
    Regional shares tracked a rally in world stocks
 that hit a more than six-month high as signs of
stabilization in China's economy and positive data from Germany
buoyed sentiment. Strong healthcare earnings pushing Wall Street
higher cemented the rise.
    Brazil's Bovespa stock index rose 1.5 percent with
state oil firm Petroleo Brasileiro and
consumer shares leading gains.
    Petrobras, as the oil company is known, rose ahead of a
meeting between its Chief executive Roberto Castello Branco and
Brazilian President Jair Bolsonaro to discuss the diesel pricing
    The company has been under pressure after it delayed a
diesel price hike after a call from Bolsonaro. Castello Branco
has denied there was government interference.
    Petrochemical company Braskem SA was among the
biggest drags on the Bovespa after an appeals court in Alagoas
state ruled the company's shareholders cannot approve its
planned payment of 2.7 billion reais ($697 million) in
    The real fell 0.4 percent as leaders of Brazil's
largest parties delayed an expected vote to start discussion in
parliament on the country's pension reform to next week.

    "This short delay is a way for the centrist parties to make
their voices heard, and may be a preview of the opposition to
come when the bill is debated in the special committee,"
analysts at Citi Research said in a note.
    House speaker (Rodrigo) Maia's goal to have pension reform
approved by the lower house by June-end "is ambitious in our
view ... opposition will be strong and risks to a longer
approval are high. At this stage we expect the special committee
to approve the pension reform in first half of the year," they
    Argentina's currency broke a six-session winning
streak to dip 0.8 percent against a dollar strengthened largely
by the euro's fall.
    The Colombian and Mexican pesos both slipped
0.5 percent as lower oil prices added to the net crude
exporters' woes.

    Key Latin American stock indexes and currencies at 1442 GMT:
    Stock indexes             Latest    Daily %
 MSCI Emerging Markets         1093.08      0.63
 MSCI LatAm                    2768.75      0.87
 Brazil Bovespa               94514.04      1.54
 Mexico IPC                   44848.66       0.5
 Chile IPSA                    5236.28      0.08
 Argentina MerVal             32257.64      1.61
 Colombia IGBC                12928.41      0.07
       Currencies             Latest    Daily %
 Brazil real                    3.8832     -0.43
 Mexico peso                   18.9429     -0.49
 Chile peso                      663.7     -0.21
 Colombia peso                 3154.75     -0.53
 Peru sol                        3.293      0.03
 Argentina peso                42.0500     -0.98

 (Reporting by Susan Mathew in Bengaluru;
Editing by Susan Thomas)
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