September 16, 2019 / 1:33 PM / 5 months ago

EMERGING MARKETS-Oil surge draws tepid response from Latam oil-exporter currencies

    * Colombia's peso outperforms its regional peers
    * Stocks in Brazil fall in early trading hours 

    By Agamoni Ghosh
    Sept 16 (Reuters) - Currencies of major Latin American crude
exporters barring the Colombian peso drew tepid response from a
rally in oil prices on Monday, following an attack on Saudi
Arabian refining facilities that cut more than 5% of the global
oil supply.  
    Oil prices surged nearly 20% at one point on Monday, after
the attack in Saudi Arabia, the world's biggest oil exporter,
halved the kingdom's production.
    But prices came off their peaks after President Donald Trump
authorized the use of the U.S. emergency stockpile to ensure
stable supply but inflamed geopolitical tensions after he said
the United States was "locked and loaded" for a potential
response to the strikes. 
    While currencies of some oil-exporters benefit from the
steep rise in oil prices, concerns that an oil supply shock and
growing geopolitical tensions would damage an already fragile
global economy sapped investor demand for riskier assets.
    "The jump in oil prices in this case is not stemming from
economic growth factors for exporters but from geopolitical
tensions which has a certain risk sentiment attached to it,"
said Cristian Maggio, head of emerging markets strategy at TD
    The only notable gainer in the region from the surge in oil
prices was the Colombian peso which moved 0.4% higher.
The Brazilian real and the Mexican peso, were both
    Chile's peso fell 0.3% after weak Chinese data fueled
worries about demand for copper.    
    Stock indices in the region were lower in the early hours of
trading with Brazil's Bovespa down 0.1%
    Stock markets in Mexico were shut for a local holiday. 

 Latin American stock indexes and currencies at 13:09 GMT

 Stock indexes                                daily % change
 MSCI Emerging Markets           1025.84               -0.08
 MSCI LatAm                      2684.25               -0.93
 Brazil Bovespa                103203.57               -0.29
 Mexico IPC                            -                   -
 Chile IPSA                      4994.66                -0.2
 Argentina MerVal                      -                   -
 Colombia IGBC                         -                   -
 Currencies                                   daily % change
 Brazil real                      4.1001               -0.31
 Mexico peso                     19.4196               -0.11
 Chile peso                        710.7               -0.40
 Colombia peso                   3346.94                0.43
 Peru sol                              -                   -
 Argentina peso                        -                   -

 (Reporting by Agamoni Ghosh in Bengaluru
Editing by Alistair Bell)
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