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Stocks rose 1.2%, currencies flat
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Mexico, Peru stocks hit record highs
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Brazil's real among top currency gainers
(Updates with afternoon trading)
By Niket Nishant and Twesha Dikshit
Dec 23 (Reuters) - Latin American stocks advanced on
Tuesday, with Brazilian and Mexican equities leading gains after
mild inflation data, even as currencies remained trapped within
tight ranges following the U.S. GDP data.
The MSCI index that tracks equities rose
1.2%, ?with Brazil's Bovespa leading with a 1.4% gain.
Consumer prices in Latin America's largest economy rose
4.41% in the 12 months through mid-December, slower ?than the
4.43% figure economists polled by Reuters had expected.
Meanwhile, Mexican equities rose almost 1% to hit ?a
record high and were headed for their fourth straight day of
gains. ?The annual inflation rate hit ?3.72% in the first half of
December, below estimates of 3.85%, data showed.
The inflation prints could strengthen the case for Latin
American stocks ?as a bright spot among emerging markets,
especially as investors ?hunt for alternatives to premium-valued
U.S. equities.
"The calm of current markets has led to gains in carry
trades, again led by Mexico and Colombia, but this will be
tested by ?the key U.S. economic data ahead, from GDP ?to durable
goods," ?said Bob Savage, head of markets macro strategy at BNY
in a note.
CHILE STOCKS STEADY
In Chile, the benchmark index ticked up 0.1%.
Investors are keeping a keen eye on the country after ?it elected
right-wing candidate Jose Antonio Kast as its president earlier
this month.
"Kast will enter office with a slew of economic pressures in
his inbox: slow growth, weak investment, stagnant productivity,
high inequality, limited social mobility and regional gaps,"
strategists at think tank Atlantic Council said.
Peru's stock benchmark scaled a fresh
record high, up 0.7% as metals including gold and copper hit
fresh peaks. Copper and gold are two of Peru's top exports.
Argentina's ?government ?posted a current account deficit of
$1.58 billion for the quarter, compared to a surplus of $891
million a year earlier, according to official data.
Argentine stocks dropped 0.7%, while the peso
ticked up.
Colombia's ?Colcap Index rose 0.5% while the peso
added 0.8%. Domestic data showed the country's October
imports rose 15.85% to $6.214 billion year-on-year.
CURRENCIES UNDER PRESSURE
MSCI's currency gauge was flat, with the
dollar paring losses after data showed that the U.S. economy
grew faster than expected in the third quarter, driven by robust
consumer spending.
Reduced odds of a rate cut by the Federal Reserve keep
dollar losses in check and limit demand for high-yielding
emerging market currencies.
Investors are also contending with potential for escalated
tensions ?between the U.S. and Venezuela after President Donald
Trump said on Monday it would be "smart" for Venezuelan
President Nicolas Maduro to leave power.
Key Latin American stock indexes and currencies at 19:43 GMT:
Equities
Latest Daily %
change
MSCI Emerging Markets 1388.99 0.37
MSCI LatAm 1.18
2706.24
Brazil Bovespa
150318.96 1.38
Mexico IPC 0.95
65396.26
Chile IPSA 10403.73
0.14
Argentina Merval
3115650.1 -0.65
6
Colombia COLCAP 0.53
2067.45
Currencies
Latest Daily %
change
Brazil real 5.5323
1.03
Mexico peso 17.9145 0.36
Chile peso 906.42 0.3
Colombia peso 0.75
3755.5
Peru ?sol 3.3638 0.06
Argentina peso (interbank) 1450.0 0.14
Argentina peso (parallel) 1485.0 1.33
(Reporting by Niket Nishant and Twesha Dikshit in Bengaluru;
Editing by Alexandra Hudson and Alistair Bell)
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