(Updates prices; adds quote)
By Agamoni Ghosh and Medha Singh
Nov 7 (Reuters) - Latin American stocks rose on Thursday as
signs of progress in U.S.-China trade relations boosted risk
appetite, but Brazil's real fell, adding to its worst decline in
three months, after the country held a disappointing second
round of oil auctions.
China said on Thursday it agreed with the United States to
remove tariffs in phases, a pivotal first step in securing a
deal and ending a trade stand-off between the world's two
largest economies.
MSCI's index of Latin American stocks rose
for the first time in three sessions with all major stock
indexes climbing higher, barring Colombian stocks, which
fell marginally.
Brazil's Bovespa was up more than 1% helped by trade
optimism and a bout of positive earnings including Banco do
Brasil which reported better-than-expected
third-quarter results.
Natura Cosmeticos jumped 7% after winning
regulatory approval for the purchase of the North American
company Avon.
Brazil's real extended losses for a second day after
another disappointing round of oil auctions with major global
oil firms passing. The underwhelming response to the country's
biggest-ever oil auction has frustrated investors' expectations
as high prices and the dominant role of state-run oil company
Petrobras scared off global oil majors.
"While the disappointing oil auction suggests less
supportive short-term flow dynamics, the medium-term narrative
for Brazil remains constructive and BRL is one of our top EM
picks," analysts from Morgan Stanley said in a note.
Chile's peso fell 0.3%. Data showed the country's
export revenue plunged by nearly one-fifth to $5.3 billion in
October, in an early sign of a faltering economy amid the worst
unrest since the South American nation's return to democracy in
1990.
Colombia's and Mexico's peso strengthened
between 0.2% and 0.6% as crude prices rose above $62 a barrel on
hopes for a U.S.-China trade deal.
The Peruvian sol was marginally lower ahead of a
central bank rate decision at 2100 GMT, with expectations rife
for a cut.
Latin American stock indexes and currencies at 13:54 GMT
Stock indexes daily % change
Latest
MSCI Emerging Markets 1075.33 0.6
MSCI LatAm 2803.08 0.59
Brazil Bovespa 109600.48 1.14
Mexico IPC 44176.71 0.82
Chile IPSA 4658.98 1.3
Argentina MerVal 35951.89 1.272
Colombia IGBC 13445.15 -0.29
Currencies daily % change
Latest
Brazil real 4.0870 -0.15
Mexico peso 19.1133 0.14
Chile peso 742.3 -0.18
Colombia peso 3316 0.58
Peru sol 3.343 -0.12
Argentina peso 59.6000 0.10
(interbank)
(Reporting by Agamoni Ghosh and Medha Singh
Editing by Leslie Adler)
