October 9, 2019 / 2:59 PM / 7 days ago

EMERGING MARKETS-Latam stocks, currencies climb on trade hopes

    Oct 9 (Reuters) - Latin American stocks and currencies
gained on Wednesday, as reports that China may be open to a
partial trade deal with the United States encouraged hopes of a
de-escalation in their trade war that has roiled markets for
over a year.
    Brazil's main Bovespa index gained 0.6%, with banks
and energy leading the rise. Shares in Gol Linhas Aereas
 jumped 4% to the top of the index after the airline
company released its outlook for third quarter.
    Stocks across the globe took a hit earlier due to concerns
over progress in the U.S.-China trade talks, but a Bloomberg
report said Beijing was open to a partial trade deal with the
U.S. despite the recent U.S. blacklisting of Chinese technology
firms.
    The Financial Times reported that China was offering to
increase annual purchases of U.S. agricultural products as part
of efforts to secure an interim trade agreement with Washington.
    
    That dented the U.S. dollar, which had already been under
pressure following Federal Reserve Chair Jerome Powell's
comments about further U.S. interest rate cuts and resumption of
bond buying.
    The weakness in the dollar helped the Mexican peso
and the Brazilian real gain 0.4% and 0.1%, respectively. 
    The real edged up even as data showed consumer price
inflation fell to its lowest in more than a year in September
and undershot the central bank's target, adding to the case for
another rate cut from the central bank.
    Mexico's currency was up 0.4%, as data showed
consumer prices cooled for a fifth month in September, but the
numbers were broadly in line with expectations.
    Ecuador's bonds slumped to multi-month lows as protesters
began a national strike after President Lenin Moreno refused to
step down or overturn anti-austerity measures that have
triggered the worst unrest in a decade.
    Violent demonstrations erupted in the Andean nation a week
ago when Moreno cut fuel subsidies as part of a package of
measures in line with a $4.2 billion International Monetary Fund
(IMF) loan.
    
    Key Latin American stock indexes and currencies at 1419GMT:
    
        Stock indexes                  Latest        Daily %
                                                     change
 MSCI Emerging Markets                     992.60        -0.14
 MSCI LatAm                               2630.86         0.35
 Brazil Bovespa                         100561.47         0.58
 Mexico IPC                              42635.57         0.24
 Chile IPSA                               5038.20        -0.06
 Argentina MerVal                               -            -
 Colombia IGBC                           12896.23        -0.06
                                                              
           Currencies                  Latest        Daily %
                                                     change
 Brazil real                               4.0880         0.18
 Mexico peso                              19.5425         0.43
 Chile peso                                723.85         0.13
 Colombia peso                            3444.25         0.11
 Peru sol                                   3.379         0.09
 Argentina peso (interbank)               57.9500        -0.17
                                                   
 

 (Reporting by Sruthi Shankar in Bengaluru; Editing by
Bernadette Baum)
  
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