By Shreyashi Sanyal
July 17 (Reuters) - Latin American stocks were set to end the week on a positive note on Friday, as optimism about more government spending supported hopes of an economic rebound from the coronavirus-led slump and soothed worries of surging infections globally.
Global equities rose on hopes of more fiscal stimulus in the world's largest economy, with the U.S. Congress set to begin debating a new aid package next week, as several states in the country's South and West implement fresh lockdown measures to curb the virus.
The MSCI's index for Latin American equities .MILA00000PUS rose 0.6%, set to end the week higher after hopes for a coronavirus vaccine and relatively stable commodity prices lifted risk appetite.
"It's a continuation of the push-pull factors influencing stocks," analysts at AJ Bell wrote in a client note.
"On one hand there is ongoing nervousness about the pandemic and localised flare-ups. On the other hand, there is the hope of more stimulus measures until there is firm evidence that the pandemic is under control and economies are getting back on track."
Brazil's real BRBY, BRL= declined 0.5% against the dollar and has underperformed regional peers on the week, as cases in the world's second largest virus hot spot continued to spike, diminishing hopes of an economic recovery any time soon.
Brazilian Central Bank President Roberto Campos Neto said on Thursday that the country's economic recovery so far has been V-shaped, although he expects the pace of growth to slow from now on.
The Mexican peso MXN= slipped against the dollar on Friday but the oil exporter is set to end the week higher as crude prices remained steady. O/R
A former boss of Mexican state oil company Petroleos Mexicanos, Emilio Lozoya, faced corruption charges that could envelop leaders of the previous government. Lozoya was taken to a hospital early on Friday shortly after his overnight extradition to Mexico from Spain.
Rising COVID-19 cases in Latin America have recently impacted agricultural trade to China, with Argentina and Brazil temporarily suspending meat exports. Agricultural products form some of the largest exports to China from the regions.
But a local head of the Argentine meat industry said the temporary suspension poses no long-term threat to the sector.
Also in Argentina, its government sent a bill to Congress late on Thursday night laying out plans to restructure public debt in dollars issued under local law, offering creditors new instruments in both foreign currency and pesos.
Key Latin American stock indexes and currencies;
Daily % change
MSCI Emerging Markets .MSCIEF
MSCI LatAm .MILA00000PUS
Brazil Bovespa .BVSP
Mexico IPC .MXX
Chile IPSA .SPIPSA
Argentina MerVal .MERV
Colombia COLCAP .COLCAP
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
Argentina peso (parallel) ARSB=
(Reporting by Shreyashi Sanyal in Bengaluru; editing by Jonathan Oatis)
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