EMERGING MARKETS-Latam stocks climb on stimulus hopes, Mexico's peso outperforms
By Agamoni Ghosh
Sept 9 (Reuters) - Latin American stocks moved higher on Monday as hopes that stimulus from the world's major economies would help prop up growth boosted sentiment, while Mexico's peso outperformed regional currencies that were mostly weaker against the dollar.
MSCI's index of Latin American stocks .MILA00000PUS rose 0.6%, in line with the broader emerging markets equity index .MSCIEF, as developing world assets held onto to September gains so far.
"Despite continued weakness in growth data, EM assets have bounced in September (equities the most), likely driven by positive headlines on trade talks as well as potential China stimulus," said Caesar Maasry, head of emerging market equity strategy at Goldman Sachs in a note.
Assets in commodity-dependent Latin American economies had taken a beating in August due to the long-drawn trade war between the United States and China, with growth dwindling in both Brazil and Mexico.
Mexico's peso MXN= as well as stocks .MXX outperformed, after data showed Mexican consumer price inflation slowed more than expected in August to near a three-year low, raising hopes the central bank would lower borrowing costs further.
Expectations are also rife among investors for an easing package from the European Central Bank this Thursday, and a likely quarter-point interest rate cut next week from the Federal Reserve. MMT/
Sao Paulo listed stocks .BVSP moved 1% higher, boosted by oil major Petrobras PETR4.SA and shares of financial companies. The real BRL= lost 0.5% against the dollar.
Chile's peso CLP= shed 0.7%, the most among its peers, as copper prices slipped on weak China export data, hurting the currency of the world's largest producer of the red metal.
Argentina's peso ARS= remained steady, picking up from Friday's moves when markets ended the week on a high note after capital controls helped arrest a sharp plunge in the peso.
Latin American stock indexes and currencies at 14:40 GMT
daily % change
MSCI Emerging Markets .MSCIEF
MSCI LatAm .MILA00000PUS
Brazil Bovespa .BVSP
Mexico IPC .MXX
Chile IPSA .SPIPSA
Argentina MerVal .MERV
Colombia IGBC .IGBC
daily % change
Brazil real BRBY
Mexico peso MXN=D2
Chile peso CLP=CL
Colombia peso COP=
Peru sol PEN=PE
Argentina peso (interbank) ARS=RASL
(Reporting by Agamoni Ghosh in Bengaluru Editing by Nick Zieminski)
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