July 24, 2018 / 8:40 PM / 3 months ago

EMERGING MARKETS-LatAm stocks buoyed by China measures, earnings

    SAO PAULO, July 24 (Reuters) - Latin American equities
mostly rose on Tuesday after China said it would adopt a more
vigorous fiscal policy to support growth in the world's
second-largest economy, with Brazil's benchmark Bovespa index
also boosted by corporate news.
    On Monday, China announced it would pursue a more active
fiscal policy to tackle external uncertainties, a shift that
will mean significant tax cuts in multiple industries.

    That news sent stocks in both emerging and global markets
higher, with the S&P 500 rising slightly and Chinese
shares hitting a one-month high.

    In Chile - a key exporter of copper to China - the benchmark
IPSA index climbed 0.79 percent in afternoon trading,
while the peso currency jumped over 1 percent. Mexico's
IPC was up 1.36 percent just before market close, helped by a
rise in shares of cement giant Cemex ahead of its
quarterly results this week.
    Mexico was helped by comments from U.S. President Donald
Trump and Mexican officials on progress in the renegotiation of
the North American Free Trade Agreement, known as NAFTA.

    Brazil was especially buoyant, as corporate profit news and
the China measures combined to push up the benchmark Bovespa
index 1.55 percent in afternoon trade, while the real
currency rose 1.05 percent.
    "China is the main reason for the relief coming from abroad,
after the government announced fiscal stimulus measures," said a
derivatives trader at a Sao Paulo brokerage.
    Shares in major iron ore miner Vale SA were up
3.45 percent after Moody's upgraded the firm, while Bradespar SA
, a holding company with a significant Vale stake,
rose 4.66 percent.
    
 Key Latin American stock indexes & currencies at 1935 GMT:
 Stock indexes                Latest      Daily     YTD
                                            pct     pct
                                         change  change
 MSCI Emerging Markets         1,081.27     1.1   -7.68
                                                 
 MSCI LatAm                    2,690.89     2.4   -7.08
                                                 
 Brazil Bovespa               79,206.78    1.55    3.67
 Mexico IPC                   49,513.87    1.36    0.32
 Chile IPSA                    5,450.29    0.79   -2.05
 Chile IGPA                   27,439.61    0.74   -1.93
 Argentina MerVal             28,196.72    1.78   -6.22
 Colombia IGBC                12,245.68    -0.1    7.70
                                                       
 Currencies                      Latest   Daily     YTD
                                            pct     pct
                                         change  change
 Brazil real                     3.7430    1.05  -11.48
 Mexico peso                    18.8900   -0.01    4.28
 Chile peso                       654.5    1.08   -6.09
 Colombia peso                    2,894    0.46    3.04
 Peru sol                         3.276    0.09   -1.19
 Argentina peso (interbank)     27.4700    0.55  -32.29
                                                 
 Argentina peso (parallel)        28.55    0.42  -32.64
                                                 
 
 (Reporting by Gram Slattery; additional reporting by Claudia
Volante, editing by G Crosse)
  
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