November 1, 2019 / 2:08 PM / 11 days ago

EMERGING MARKETS-Latam markets rally as upbeat U.S., China data lift sentiment

    By Susan Mathew
    Nov 1 (Reuters) - Most Latin American currencies made
healthy gains against a steady dollar on Friday, putting an
index of regional currencies on track for a third week of gains,
while Brazil stocks scaled new highs as positive data from U.S.
and China lifted global sentiment.
    Brazil's real rallied 1% and led gains among regional
currencies, while Mexico's peso 0.6%, taking MSCI's index
of Latam currencies up 0.7% on the day and the week.
    The dollar gained some ground after data showed U.S. job
growth slowed less than expected in October, while wages gained
and hiring in the prior two months was stronger than previously
estimated.
    This latest sign of strength in the U.S. economy buoyed Wall
Street as well and followed surprisingly upbeat factory activity
data from China, alleviating some fears of a complete downturn
in global growth.
    Brazil's shares shot to new highs with shares of
pulp and paper company Suzano topping the main index
 after reporting quarterly results.
    Iron ore miner Vale was the biggest boost with
operations at its Alegria mine as well as its joint venteure
Samarco with BHP set to restart.  
    Brazil's real looked to post its best day a week and
a half, despite data showing the country's manufacturing sector
expanded at a weaker pace in October.
    "We're watching for prospective inflows stemming from the
November 6 Transfer of Rights auction to help to reverse the
recent FX outflows trend," said Morgan Stanley analysts in a
note.
    "We are also keeping an eye on the potential economic
package to be announced by the administration in the coming
days, as growth-supportive measures are likely to provide a
further boost for the currency."
    The currency was on track to post a second straight week of
gains, and while Mexico's peso firmed on the day, it was set to
break a four week winning streak. 
    Chile's peso posted a second week of losses as
domestic unrest on economic inequality dented appetite for the
country's assets. Colombia's peso lurked at three months
highs on day. 
        
    Key Latin American stock indexes and currencies at 1341 GMT:
   Stock indexes            Latest    Daily %
                                      change
 MSCI Emerging Markets       1048.65     0.64
                                      
 MSCI LatAm                  2813.85     1.31
                                      
 Brazil Bovespa            108227.84     0.94
                                      
 Mexico IPC                        -        -
                                      
 Chile IPSA                        -        -
                                      
 Argentina MerVal                  -        -
                                      
 Colombia IGBC                     -        -
                                      
                                             
       Currencies           Latest    Daily %
                                      change
 Brazil real                  3.9765     0.79
                                      
 Mexico peso                 19.1271     0.53
                                      
 Chile peso                   740.95     0.15
                                      
 Colombia peso               3346.62     0.91
 Peru sol                          -        -
                                      
 Argentina peso              59.6000     0.13
 (interbank)                          
                                      
 
 (Reporting by Susan Mathew in Bengaluru;)
  
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