for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Company News

EMERGING MARKETS-Currencies rally as Biden leads in some U.S. election battleground states; real, rouble jump

    * Brazil industrial output lifts real 
    * Mexican peso rebounds from sharp declines overnight
    * Russian rouble surges, South African rand firms

 (Updates prices throughout, adds comments)
    By Shreyashi Sanyal
    Nov 4 (Reuters) - Emerging market currencies rallied on
Wednesday against a weaker dollar as U.S. presidential election
candidate Joe Biden led in ballots counted in some battleground
states, with Brazil's real and the Russian rouble surging among
peers.  
    Brazil's currency - the worst performing
emerging market currency this year - jumped 1.7% against the
dollar after industrial production rose a forecast-beating 2.6%
in September. The figures remain consistent with other data that
have shown rapid recovery in the manufacturing and industrial
sectors, while Brazil's dominant services sector lagged.
 
    The real has fallen nearly 30%, with record low interest
rates adding pressure on the currency.
    Russia's rouble jumped 2.2%, logging its best day
since mid-March, with rising oil prices adding to the momentum.
The rouble only traded on the global interbank market on
Wednesday as Moscow's exchange remained closed for a public
holiday, amid thin trading volume. 
    The Mexican peso, which had suffered from the Trump
administration's hard line on trade in recent years, rose 0.6%
as Democrat Biden led votes counted so far in Wisconsin and
Michigan, a boost in his quest to defeat Republican President
Donald Trump. The recovery followed a tumble of as much as 4%
overnight.  
    "They (markets) priced in blue wave where the Democrats
would take the Presidency and the Senate. Then last night you
had betting odds thinking it would be a Trump presidency with a
Republican Senate. This morning we've kind of come full circle
with a Biden presidency, a Republican Senate and a Democratic
House," said Sameer Samana, senior global market strategist at
Wells Fargo Investment Institute in St. Louis. 
    Trump falsely claimed victory early on Wednesday and also
made unsubstantiated claims of electoral fraud. He said his
lawyers would be taking his case to the U.S. Supreme Court,
without specifying what they would claim.          
      
    
    Emerging market hard-currency bonds tallied up healthy gains
on Wednesday after a sharp drop in U.S. Treasury yields
reinvigorated the hunt for yield and soothed market jitters
across some of the developing world over the U.S. elections.

    The South African rand strengthened 1.2%, while
China's yuan firmed after President Xi Jinping flagged
strong local consumption trends and said China was moving faster
to open up its financial markets.       
    Stocks across emerging markets took their cue from Wall
Street as investors priced in more fiscal stimulus for the
world's biggest economy with either candidate winning the U.S.
vote.
    "Biden remains a small front-runner and it would appear the
Senate will remain Republican ... but with regards to fiscal
stimulus the market believes that a deal of ~$1 trillion is
possible regardless of the ultimate outcome," said Yousef
Abbasi, global market strategist at StoneX.
    The MSCI's EM equities index gained 1.5% and its
Latin American counterpart added 2.0%. 

    Latin American stock indexes and currencies at 2007 GMT:
    
          Stock indexes                     Latest      Daily %
                                                        change
 MSCI Emerging Markets                         1137.77     1.51
 MSCI LatAm                                    1898.27     2.03
 Brazil Bovespa                               97990.89      2.1
 Mexico IPC                                   37515.27     0.13
 Chile IPSA                                    3518.05     -0.1
 Argentina MerVal                             46982.21    -2.05
 Colombia COLCAP                               1154.32     0.26
                                                               
             Currencies                     Latest      Daily %
                                                        change
 Brazil real                                    5.6580    -0.04
 Mexico peso                                   20.9820     0.56
 Chile peso                                      754.1     0.64
 Colombia peso                                 3813.57     0.10
 Peru sol                                       3.5998    -0.25
 Argentina peso (interbank)                    79.0200    -0.11
                                                        
 Argentina peso (parallel)                         157     5.10
                                                        
 
 

    
 (Reporting by Shreyashi Sanyal in Bengaluru; Additional
reporting by Karin Strohecker in London and Sinead Carew in New
York; Editing by William Maclean and Grant McCool)
  
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up