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EMERGING MARKETS-LatAm currencies mostly up on U.S. jobs data
May 5, 2017 / 5:07 PM / 7 months ago

EMERGING MARKETS-LatAm currencies mostly up on U.S. jobs data

    By Bruno Federowski
    SAO PAULO, May 5 (Reuters) - Latin American currencies
mostly strengthened on Friday after U.S. jobs data reinforced
expectations of a June rate hike, but were seen as not enough to
warrant a faster pace of increases afterward.
    U.S. nonfarm payrolls rose by more than expected last month,
but March figures were revised lower and the labor force
participation dipped. Average hourly earnings rose 2.5 percent
from the year before, the smallest increase since August 2016.

    Traders said the figures would likely allow the Federal
Reserve to hike rates next month, as previously expected.
    Still, the March revision and labor force participation data
surprised some investors who had bet that the U.S. central bank
would tighten policy at a fast pace from then on.
    A slower pace of rate hikes would maintain the appeal of
high-yielding emerging market currencies.
    The Mexican peso strengthened 0.2 percent, while
the Chilean peso rose 0.5 percent. The Brazilian real
 firmed as much as 0.5 percent before paring gains to
trade nearly flat.
    Concerns that President Michel Temer's government could face
stronger-than-expected opposition in Congress to his flagship
pension reform proposal have weighed on demand for Brazilian
assets in recent weeks.
    The country's benchmark Bovespa stock index,
however, rose 1.1 percent, supported by rising shares of
state-controlled oil company Petróleo Brasileiro SA
in the wake of a rebound in crude futures.
    Shares of miner Vale SA also jumped on
bargain-hunting following recent declines, sidestepping a fall
in prices of iron ore.
    Key Latin American stock indexes and currencies at 1630 GMT:
 Stock indexes                             daily %    YTD %
                                Latest      change   change
 MSCI Emerging Markets             976.76    -0.34    13.66
 MSCI LatAm                       2612.10     0.76    10.75
 Brazil Bovespa                  65566.64     1.09     8.87
 Mexico IPC                      49326.67     0.67     8.07
 Chile IPSA                       4849.85    -0.07    16.82
 Chile IGPA                      24326.08    -0.02    17.32
 Argentina MerVal                21042.01     0.26    24.38
 Colombia IGBC                   10297.00     0.47     1.67
 Venezuela IBC                   58927.10     0.64    85.86
 Currencies                                daily %    YTD %
                                            change   change
 Brazil real                       3.1818    -0.02     2.12
 Mexico peso                      19.0200     0.16     9.06
 Chile peso                         671.7     0.45    -0.15
 Colombia peso                    2957.17     0.82     1.50
 Peru sol                           3.266     0.49     4.53
 Argentina peso (interbank)       15.3450    -0.16     3.45
 Argentina peso (parallel)          15.84     0.44     6.19

 (Reporting by Bruno Federowski; Editing by Frances Kerry)

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