September 9, 2019 / 3:07 PM / 14 days ago

EMERGING MARKETS-Latam stocks climb on stimulus hopes, Mexico's peso outperforms

    By Agamoni Ghosh
    Sept 9 (Reuters) - Latin American stocks moved higher on
Monday as hopes that stimulus from the world's major economies
would help prop up growth boosted sentiment, while Mexico's peso
outperformed regional currencies that were mostly weaker against
the dollar.
    MSCI's index of Latin American stocks rose
0.6%, in line with the broader emerging markets equity index
, as developing world assets held onto to September
gains so far.
    "Despite continued weakness in growth data, EM assets have
bounced in September (equities the most), likely driven by
positive headlines on trade talks as well as potential China
stimulus," said Caesar Maasry, head of emerging market equity
strategy at Goldman Sachs in a note.
    Assets in commodity-dependent Latin American economies had
taken a beating in August due to the long-drawn trade war
between the United States and China, with growth dwindling in
both Brazil and Mexico. 
    Mexico's peso as well as stocks outperformed,
after data showed Mexican consumer price inflation slowed more
than expected in August to near a three-year low, raising hopes
the central bank would lower borrowing costs further.

    Expectations are also rife among investors for an easing
package from the European Central Bank this Thursday, and a
likely quarter-point interest rate cut next week from the
Federal Reserve.
    Sao Paulo listed stocks moved 1% higher, boosted by
oil major Petrobras and shares of financial
companies. The real lost 0.5% against the dollar. 
    Chile's peso shed 0.7%, the most among its peers, as 
copper prices slipped on weak China export data, hurting the
currency of the world's largest producer of the red metal.
 
    Argentina's peso remained steady, picking up from
Friday's moves when markets ended the week on a high note after
capital controls helped arrest a sharp plunge in the peso. 

 Latin American stock indexes and currencies at 14:40 GMT
 Stock indexes                                  daily %
                           Latest                change
 MSCI Emerging Markets           1011.13           0.31
                                          
 MSCI LatAm                      2691.90           0.42
                                          
 Brazil Bovespa                103960.63           1.00
                                          
 Mexico IPC                     43140.71           1.21
                                          
 Chile IPSA                      4831.85           0.17
                                          
 Argentina MerVal                      -              -
                                          
 Colombia IGBC                  12735.59           0.22
                                          
                                                       
 Currencies                                     daily %
                                  Latest         change
 Brazil real                      4.0855          -0.14
                                          
 Mexico peso                     19.5249           0.32
                                          
 Chile peso                        716.2          -0.72
                                          
 Colombia peso                   3369.84          -0.55
 Peru sol                         3.3448          -0.08
                                          
 Argentina peso                  55.8000           0.04
 (interbank)                              
                                          
 

 (Reporting by Agamoni Ghosh in Bengaluru
Editing by Nick Zieminski)
  
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