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EMERGING MARKETS-Latam stock markets underpinned by risk-on sentiment; FX mixed

Credit: REUTERS/© Nacho Doce / Reuters

Most Latin American stocks rose on Wednesday as the prospect of increased stimulus in major economies underpinned risk-on buying in emerging markets, with safe-haven plays such as gold and bonds taking a backseat.

Sept 11 (Reuters) - Most Latin American stocks rose on Wednesday as the prospect of increased stimulus in major economies underpinned risk-on buying in emerging markets, with safe-haven plays such as gold and bonds taking a backseat.

MSCI's index of Latin American stocks .MILA00000PUS added 1.5% to climb to a near one-month high, while currencies were mixed against a strong dollar.

Investors perceived a conciliatory move from China to exempt 16 types of U.S. products from additional retaliatory tariffs for a year as a positive step in the trade war between Washington and Beijing.

Comments from a senior White House adviser, however, played down expectations for the next round of talks, raising doubts on whether a trade deal would be agreed on this year.

Investors are looking forward to the European Central Bank's monetary policy meeting on Thursday, where officials are widely expected to trim interest rates and introduce a stimulus package to shore up economic growth.

Brazil's Bovespa index .BVSP gained about 0.9%, with consumer discretionary stocks accounting for most gains after data showed retail sales in July marked their biggest rise so far this year.

Financial services provider B3 SA Brasil Bolsa Balcao B3SA3.SA rose 3% and was the biggest boost to the Bovespa, while apparel retailer Lojas Renner SA LREN3.SA rose about 2%.

Stock indices in Mexico .MXX and Colombia .IGBC gained between 0.3% and 0.4%.

Currencies in the region were more mixed, with Brazil's real BRL= gaining 0.4%, while Colombia's peso COP= shed 0.3%.

Colombia is slated to take out nearly 19.2 trillion pesos ($5.7 billion) in new debt to finance next year's budget, Finance Minister Alberto Carrasquilla told Congress on Tuesday, without specifying whether the funds would come from bonds, loans or other sources.

The Chilean peso CLP= retreated more than 0.4% against the dollar, as the price of copper, the country's top export, continued to fall on weak demand for the metal. MET/L

The Mexican peso MXN= and the Colombian peso fell about 0.3% each. Both currencies had gained substantially over the last week, tracking robust oil prices. O/R

Latin American stock indexes and currencies at 1417 GMT

Stock indexes

Latest

Daily % change

MSCI Emerging Markets .MSCIEF

1017.19

0.9

MSCI LatAm .MILA00000PUS

2699.56

1.48

Brazil Bovespa .BVSP

104127.08

1.06

Mexico IPC .MXX

42689.13

0.24

Chile IPSA .SPIPSA

4886.49

0.13

Argentina MerVal .MERV

28359.79

-0.255

Colombia IGBC .IGBC

12810.14

0.43

Currencies

Latest

daily % change

Brazil real BRBY

4.0626

0.80

Mexico peso MXN=D2

19.5493

-0.30

Chile peso CLP=CL

714.6

-0.42

Colombia peso COP=

3369.75

-0.30

Peru sol PEN=PE

3.3468

-0.11

Argentina peso (interbank) ARS=RASL

56.0600

-0.02

(Reporting by Ambar Warrick in Bengaluru; Editing by Dan Grebler)

((Ambar.Warrick@thomsonreuters.com; +91-80-6749-6625; Reuters Messaging: ambar.warrick.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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