September 29, 2017 / 4:33 PM / a year ago

EMERGING MARKETS-Brazil stocks rebound after six-day string of losses

    By Bruno Federowski
    SAO PAULO, Sept 29 (Reuters) - Brazilian stocks rose on
Friday as weaker-than-expected U.S. inflation data led to
bargain-hunting following a six-day string of losses.
    The benchmark Bovespa stock index rose 0.5 percent
after dropping 3.2 percent in the previous six sessions.
    The data showed annual inflation increasing at the slowest
pace since late 2015, the latest in a series of tepid reports.

    Although the report did little to change expectations that
the U.S. Federal Reserve would raise interest rates in December,
it cast some doubt about tightening after that. A slower pace of
rate hikes could increase demand for high-yielding assets in
emerging markets.
    Shares of Kroton Educacional SA, Brazil's largest
for-profit college operator, led the gains on local media
reports that it could purchase smaller rival Somos Educação SA.
Somos shares rose 1 percent.
    The Brazilian real strengthened 0.5 percent in
volatile trading as investors tried to influence a benchmark
rate calculated by the central bank on the last trading day of
each month.
    Still, investors warned that the upswing was fragile because
of growing concern about whether Brazilian President Michel
Temer's agenda would win passage. Corruption accusations have
delayed his plan to streamline the social security system, seen
as key to curb growth of public debt and boost long-term growth.
    "There is almost no chance that pension reform will be voted
on this year," Magliano Corretora analyst Pedro Galdi said.
    Other Latin American currencies seesawed, heading for weekly
losses. The Chilean peso was down 0.5 percent, while
the Mexican peso was flat.
    Key Latin American stock indexes and currencies at 1720 GMT:
 Stock indexes                               daily %    YTD %
                                              change   change
 MSCI Emerging Markets              1080.82     0.79    24.37
 MSCI LatAm                         2905.99     0.75    23.23
 Brazil Bovespa                    73926.90     0.49    22.75
 Mexico S&P/BVM IPC                50362.68     0.45    10.34
 Chile IPSA                         5340.18     0.58    28.64
 Chile IGPA                        26673.37     0.52    28.64
 Argentina MerVal                  26021.25     1.66    53.81
 Colombia IGBC                     11049.48    -0.27     9.10
 Venezuela IBC                    487424.78      2.8  1437.36
 Currencies                                  daily %    YTD %
                                              change   change
 Brazil real                         3.1664     0.50     2.61
 Mexico peso                        18.1575    -0.02    14.24
 Chile peso                          638.55    -0.47     5.03
 Colombia peso                      2936.11     0.22     2.23
 Peru sol                             3.266     0.00     4.53
 Argentina peso (interbank)         17.3450     0.89    -8.48
 Argentina peso (parallel)            17.88     0.50    -5.93
 (Reporting by Bruno Federowski; Editing by Lisa Von Ahn)
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