October 10, 2019 / 3:16 PM / 8 months ago

EMERGING MARKETS-Latam stocks gain on positive U.S.-China trade comments

    By Sruthi Shankar
    Oct 10 (Reuters) - Latin American stocks gained on Thursday
as investors rushed to buy risky assets, encouraged by signs
that Washington and Beijing could reach a trade deal, while most
currencies in the region steadied against a soft dollar.
    Brazil's Bovespa jumped 0.8%, while an index of
emerging market stocks rose 0.5% after U.S. President
Donald Trump confirmed he would meet Chinese Vice Premier Liu He
on Friday for further trade talks.
    That added to optimism following a report China was willing
to reach a deal, while an official from the U.S. Chamber of
Commerce said there was a currency agreement was possible.

    Washington has threatened further tariffs on $250 billion
worth of Chinese goods on Oct. 15.
    "It needs to be seen if this initiative allows China and the
U.S. to reach an agreement allowing a postponement of further
tariffs or even a reduction of already implemented tariffs,"
Morgan Stanley analysts wrote in a note.
    "But the renewed focus on the currency... takes the focus
back to (dollar) overvaluation," the note added.
    In Washington, top trade negotiators met for the first time
since late July, seeking to hammer out a deal to end their
15-month trade war that has hit the global economy.
    Brazil's real rose the least among its Latin American peers
as slower-than-expected rise in August retail sales raised
concerns about the economy's recovery, even as the dollar
softened against a basket of major currencies.
    Brazil's latest numbers followed data on Wednesday that
showed consumer price inflation in September fell to its lowest
in more than a year, increasing chances for a third rate cut
this year.
    The Mexican, the Chilean and the Colombian
 pesos all gained about 0.3%.
    Minutes from the Bank of Mexico's latest policy meeting
showed two members of the five-member board wanted a 50 basis
point interest rate cut in September instead of the 25 basis
point cut by the central bank.
    The minutes followed data on Wednesday showing consumer
prices cooled for a fifth straight month in September.

    Key Latin American stock indexes and currencies at 1424 GMT:
        Stock indexes                  Latest       Daily %
 MSCI Emerging Markets                     998.06        0.51
 MSCI LatAm                               2653.00        0.76
 Brazil Bovespa                         102052.03        0.79
 Mexico IPC                              42833.07        0.78
 Chile IPSA                               5038.80        0.12
 Argentina MerVal                        30592.42       0.838
 Colombia IGBC                           12954.43        0.36
           Currencies                  Latest       Daily %
 Brazil real                               4.1026        0.20
 Mexico peso                              19.4980        0.33
 Chile peso                                 720.6        0.32
 Colombia peso                            3455.63        0.24
 Peru sol                                   3.363        0.09
 Argentina peso (interbank)               57.9850        0.01
 (Reporting by Sruthi Shankar in Bengaluru)
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