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EMERGING MARKETS-Bovespa top gainer among Latam markets, FX firms

Credit: REUTERS/JOSE LUIS GONZALEZ

A Latin American stocks benchmark rose on Tuesday, boosted by strong gains in index heavyweight Brazil, and the region's currencies firmed broadly against the dollar as frosty U.S.-China ties marginally thawed.

By Aaron Saldanha

May 21 (Reuters) - A Latin American stocks benchmark rose on Tuesday, boosted by strong gains in index heavyweight Brazil, and the region's currencies firmed broadly against the dollar as frosty U.S.-China ties marginally thawed.

The United States late on Monday allowed Huawei Technologies Co HWT.UL to buy U.S.-made goods until Aug. 19 in order to maintain existing telecoms networks and provide software updates to its smartphones, which helped global risk appetite to tick upward after being battered in the previous session. MKTS/GLOB

MSCI's index of Latin American stocks .MILA00000PUS rose 2.5%, while its Latin American currencies index .MILA00000CUS gained 1%.

Sao Paulo-traded stocks .BVSP surged 2.7%, distancing themselves further from an about 4-1/2-month low seen on Friday.

Thiago Salomão, an analyst at Rico Investimentos, said there was a buying opportunity among Brazilian stocks following last week's 4.5% slide, adding the market on the day was building on the previous session's gains.

State-run oil firm Petroleo Brasileiro SA (Petrobras) saw its common shares PETR3.SA and preferred shares PETR4.SA rise 2.2% and 3.1%, respectively, supported by higher oil prices LCOc1. O/R

The Petrobras board approved an addendum to a transfer-of-rights oil contract that will see it reimbursed to the tune of $9.06 billion, although the deal is subject to governmental agreement.

CPFL Energia SA CPFE3.SA traded 3.1% higher. The utility offered to buy the stake of China's State Grid STGRD.UL in its renewables arm CPFL Renovaveis.

Shares of miner Vale SA VALE3.SA rose 1.7%, following a gain in Dalian-traded iron ore futures earlier in the global day. IRONORE/

Brazil's currency BRL= jumped 1.1%, while yields on local 10-year bonds BR10YT=RR slid 17 basis points to 8.84%.

Mexican stocks .MXX slid 0.7%, although the peso MXN= firmed 0.3%.

America Movil AMXL.MX was trading 0.4% lower. El Salvador said it rejected the telecoms giant's bid to buy Spanish rival Telefonica's TEF.MC local unit on anti-trust grounds.

Argentina stocks .MERV rose 2.7%, on course for its highest closing level in more than two months, while the peso ARS= firmed.

Chilean equity markets were closed for a local holiday.

Colombia's peso COP= firmed 0.4% as it recovered from a more than three-year low hit earlier in the session, while stocks .IGBC tacked on 0.8%. Strong oil prices set the stage for Ecopetrol SA ECO.CN to rise 1.3%.

Latin American stock indexes and currencies at 1937 GMT:

Stock indexes

Latest

Daily % change

MSCI Emerging Markets .MSCIEF

994.08

0.53

MSCI LatAm .MILA00000PUS

2,544.95

2.52

Brazil Bovespa .BVSP

94,424.29

2.7

Mexico IPC .MXX

43,232.90

-0.66

Chile IPSA .IPSA

-

N/A

Argentina MerVal .MERV

34,413.77

2.75

Colombia IGBC .IGBC

12,203.41

0.83

Currencies

Latest

Daily % change

Brazil real BRBY

4.0528

1.27

Mexico peso MXN=D2

19.0138

0.24

Chile peso CLP=

694.61

0.21

Colombia peso COP=

3,339.05

0.33

Peru sol PEN=PE

3.34

0.21

Argentina peso (interbank) ARS=RASL

44.7800

0.98

(Reporting by Aaron Saldanha in Bengaluru and Stefani Inouye in São Paulo; editing by G Crosse)

((Aaron.Saldanha@thomsonreuters.com; +91-80-6749-1130; Reuters Messaging: Aaron.Saldanha@thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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