January 28, 2020 / 2:46 PM / 25 days ago

EMERGING MARKETS-Latam assets bounce day after virus-related sell-off

    By Shreyashi Sanyal
    Jan 28 (Reuters) - Latin American stocks and currencies
bounced on Tuesday, taking comfort from comments by the head of
the World Health Organisation after a sharp sell-off a day
earlier triggered by the potential economic damage of China's
coronavirus outbreak. 
    MSCI's index for Latin American currencies
rose 0.5%, while the index for stocks rose 1.3%.
    Wall Street also showed signs of recovery, with all three of
its major indexes opening higher. 
    "Some of the comments coming out of the WHO and other
medical advisers are helping markets catch a breath after
yesterday's decline which was somewhat overdone," said Peter
Cardillo, chief market economist at Spartan Capital Securities
in New York.
    Global financial markets have recently turned risk averse as
investors worried about the potential impact of the outbreak on
China, the world's second-biggest economy. Those worries hit
stock markets in Asia the hardest in early trading hours.

    Mexico's peso strengthened slightly against the
dollar. Data showed Mexico posted a $1,283 million trade surplus
in December. 
    "We remain with an uncertain scenario for the coming months
(for Mexico), due to several signals suggesting a stagnant
economy longer than expected," Scotiabank analysts wrote in a
note.
    Also on the radar for investors in Mexico, U.S. President
Donald Trump will sign a trade pact agreed between the United
States, Mexico and Canada on Wednesday during a ceremony at the
White House. 
    Sao Paulo stocks also attempted a comeback by rising
1.5%, after being knocked off record highs during the previous
session.
    Brazilian airline Azul SA jumped 6%, to the top
of the Bovespa index, as it hoped to sub-lease 53 Embraer E195
jets to Poland's LOT and U.S.-based Breeze Aviation Group.
    
    
    Key Latin American stock indexes and currencies at 1430 GMT
    
    Stock indexes             Latest    Daily % change
 MSCI Emerging Markets         1097.76            -0.47
                                        
 MSCI LatAm                    2823.33             1.34
                                        
 Brazil Bovespa              115931.22             1.27
                                        
 Mexico IPC                          -                -
                                        
 Chile IPSA                    4597.20             0.78
                                        
 Argentina MerVal             40453.50            2.144
                                        
 Colombia COLCAP               1623.97                0
                                        
                                                       
       Currencies             Latest    Daily % change
 Brazil real                    4.2040             0.11
                                        
 Mexico peso                   18.8375             0.36
                                        
 Chile peso                      788.8            -0.15
                                        
 Colombia peso                  3392.5             0.19
 Peru sol                       3.3328            -0.05
                                        
 Argentina peso                60.1600             0.02
 (interbank)                            
                                        
 

 (Reporting by Shreyashi Sanyal in Bengaluru; Additional
reporting by Sruthi Shankar in Bengaluru; editing by Nick
Macfie)
  
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