October 16, 2018 / 3:19 PM / 10 months ago

EMERGING MARKETS-Latam stocks, currencies rise; Brazil's real hits 10-week high

    By Susan Mathew
    Oct 16 (Reuters) - Latin American stocks rose on Tuesday as
risk appetite improved due to a rebound on Wall Street and
European stock markets, while the region's currencies firmed
against a weaker dollar.
    Data showing U.S. industrial output rose more than expected
did little to cheer dollar bulls. The greenback was sent to
three-week lows after tepid U.S. retail sales data on
    "The day begins with a lower feeling of risk aversion, so
the dollar generally loses ground against most currencies,"
analysts at CI Banco said in a note.
    Wall Street's bounce after strong earnings from bellwether
firms added to the positive sentiment toward developing market
assets, which were lifted by a recovery in volatile Italian
assets, and news that Saudi Arabia would acknowledge the death
of a missing journalist in a botched interrogation.

    Mexico's peso strengthened for a fourth straight day,
while the Argentine peso traded higher, coming back
strong after a three-day weekend. 
    Brazil's real firmed more than 1 percent to its
highest point in 10 weeks, driven by ongoing investor optimism
over the prospect that the far-right presidential candidate
would win a run-off vote later this month.
    Among stocks, Sao Paulo's Bovespa stock index
extended gains for a second day, with iron ore miner Vale's
 shares rising 1.5 percent a day after it reported
record high output in the third quarter.

    Airliner Gol Linhas Aereas Inteligentes SA rose
6.5 percent, sustaining gains after announcing plans to buy out
minority shareholders in its loyalty program Smiles Fidelidade
, while Smiles was the biggest gainer on the index.
Shares of Smiles plunged 40 percent on Monday after news of the
    Mexico's IPC index rose, with shares of
petrochemicals company Alpek leading gains with its
3.7 percent rise, after posting positive third-quarter results.
    Key Latin American stock indexes and currencies at 1425 GMT:
 Stock indexes                             Daily %     YTD %
                                            change    change
 Brazil Bovespa                  84789.58     1.72     10.98
 Mexico IPC                      48078.62     0.71     -2.58
 Chile IPSA                       5184.15     0.76      0.76
 Argentina MerVal                30056.75     1.55     -0.03
 Colombia IGBC                   12315.02    -0.25      8.31
 Currencies                                Daily %     YTD %
                                            change    change
 Brazil real                       3.7047     0.78    -10.56
 Mexico peso                      18.7598     0.39      5.01
 Chile peso                           671     1.27     -8.40
 Colombia peso                     3052.5     1.27     -2.31
 Peru sol                           3.331     0.12     -2.82
 Argentina peso (interbank)       36.5500     0.66    -49.11
 Argentina peso (parallel)          37.25     1.34    -48.38
 (Reporting by Susan Mathew in Bengaluru
Editing by Paul Simao)
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