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Latin American Markets Broadly Higher, But Losing Gains Late In The Day; Rose On Bernanke, China Speculation

By: MT Newswires
Posted: 2/27/2013 1:56:00 PM
Referenced Stocks: ASR;BHP;RIO;VALE

Latin American equities were mostly higher in late trading, but they were losing some of their gains, which is giving downward momentum going in to Thursday's session.

Today Latin American markets largely followed gains elsewhere after Federal Reserve Chairman Ben Bernanke said the U.S. central bank will keep its pro-stimulus policies in place until unemployment falls and the economy appears to be on more stable ground.

Speculation that China may soon take steps to support equities also boosted emerging markets today. The China Securities Journal was reporting the nation's market is considering measures allowing investors holding passports from Hong Kong, Macau and Taiwan and living on the mainland to invest in domestic Chinese shares. China also may allow more firm to develop asset-backed securities as part of efforts to boost liquidity, the newpaper reported.

Here's where the regional markets stand today:

- Ibovespa was up 421.81. Now down 69.28, -0.12% at 56,879.6.

- IPC (Mexico City) was up 154.59. Now up 104.7, +0.24% at 43,593.9.

- Santiago Index IPSA up 17.74, +0.46% at 3,897.9.

- Merval Buenos Aires up 37.75, +1.2% at 3,157.9.

In company news, Swiss commodities trader Glencore today purchased an undisclosed equity stake in Ferrous, an unlisted Brazilian exporter of iron ore, also agreeing to purchase 20 mln tons of ore from Ferrous over the next four years. Shares of Vale SA ( VALE ), Rio Tinto ( RIO ) and BHP Billiton ( BHP ) all are higher today.

Also, ADRs of Grupo Aeroportuario del Sureste SAB de CV ( ASR ) are up about 3% and have posted a new 52 week high with the Mexican airports operator saying the U.S. Federal Aviation Administration has approved the company's application to operate the San Juan Luis Munoz Marin International Airport in Puerto Rico as a public-private partnership.

The approval paves the way for the facility to become the first major airport under U.S. jurisdiction to be run by a private operator under the FAA's Pilot Privatization Program, which was signed into law in 1996. Aerostar expects to invest nearly $1.4 billion over the 40-year life of the lease.