February 15, 2018 / 4:21 PM / a year ago

EMERGING MARKETS-LatAm markets rise as global stocks rebound from recent selloff

    By Bruno Federowski
    SAO PAULO, Feb 15 (Reuters) - Latin American markets rose on
Thursday as global stocks shrugged off recent losses and traded
higher, supporting demand for riskier assets.
    Currencies and stocks throughout the region rose as global
markets recovered from a deep sell-off triggered by figures
showing rising U.S. wages. 
    Some investors fear that increased inflationary pressure
could drive the Federal Reserve to increase interest rates
faster than expected in coming months, driving away capital from
stocks and emerging market assets.
    But most licked their wounds in recent days following deep
losses last week.
    Traders struggled to explain the move, though some said
weaker-than-expected U.S. industrial figures helped to drive
some bargain-hunting. Others said Asian bears may be squaring up
positions for the Lunar New Year.
    Currencies from Mexico, Chile and Colombia
 firmed between 0.4 percent and 0.6 percent, while MSCI's
Latin American stock index rose 1.7 percent.
    Brazil's stock exchange was up 1 percent, supported by a
rally in shares of miner Vale SA on the heels of
rising iron ore prices.
    But the Brazilian real seesawed as traders adjusted
their holdings following the long Carnival holiday.
    Yields on interest-rate futures fell slightly after minutes
from the central bank's latest policy meeting showed
policymakers diverged last week over how strongly to hint at the
end of interest rate cuts.
    Last week, the central bank cut the benchmark Selic interest
rate by 25 basis points, as widely expected, to an all-time low
of 6.75 percent, and it strongly hinted at the end of the easing
    Key Latin American stock indexes and currencies at 1610 GMT:
 Stock indexes                             daily %     YTD %
                                  Latest    change    change
 MSCI Emerging Markets            1204.42     1.61      2.32
 MSCI LatAm                       3107.54     1.45       8.3
 Brazil Bovespa                  84152.27     0.73     10.14
 Mexico IPC                      48806.54     0.84     -1.11
 Chile IPSA                       5611.56     0.92      0.84
 Chile IGPA                      28242.72     0.78      0.94
 Argentina MerVal                31956.95     1.29      6.29
 Colombia IGBC                   11707.35    -0.21      2.96
 Currencies                                daily %     YTD %
                                            change    change
 Brazil real                       3.2318    -0.18      2.52
 Mexico peso                      18.5050     0.45      6.45
 Chile peso                        592.35     0.43      3.76
 Colombia peso                    2850.96     0.60      4.60
 Peru sol                           3.246     0.46     -0.28
 Argentina peso (interbank)       19.7550     0.78     -5.85
 Argentina peso (parallel)          19.84     0.60     -3.07

 (Reporting by Bruno Federowski
Editing by Jonathan Oatis)
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