EMERGING MARKETS-Latam FX firm against weaker dollar; Stocks track Wall Street higher

    By Susan Mathew
    Sept 9 (Reuters) - Latin American currencies firmed on
Wednesday after a sharp sell-off in the previous session, with
Mexico's peso looking to post its biggest one-day gain in two
weeks as the dollar slipped.
    Stocks in the region rose as Wall Street recovered from a
technology stocks related rout. Brazil's Bovespa led
gains, up 0.9%, while Colombia's COCLAP was set for
its best session in a week.
    MSCI's index of Latam stocks jumped 1.8%
    Sentiment, however, remained fragile after AstraZeneca
 paused the trial of its most promising COVID-19 vaccine
after an unexplained illness in a study participant.
    Mexico's peso rose 0.9% after data showed consumer
price inflation in August rose to 4.05%, above the central
bank's target of 3%. Mexico's central bank has cut its benchmark
lending rate by 375 basis points since August last year to 4.5%,
and has a one percentage point tolerance band above or below
that figure.
    "The data might reinforce Bank of Mexico's increasingly
cautious stance, but we still expect further monetary easing,
including a 25 basis point cut at its meeting later this month,"
said William Jackson, chief emerging markets economist at
Capital Economics.
    Similar data from Brazil showed inflation hit its highest in
four years last month, although the pace slowed from July and
overall inflation remained well below the central bank's goal.
Analysts say the key interest rate will stay at its record low
level till at least until 2022.
    The real currency rose more than 1% attempting to
erase Tuesday's losses. 
    A Vontobel Asset Management survey of 300 institutional
investors and discretionary wealth managers showed that a
majority of investors are planning to increase their emerging
markets exposure over the next five years, even as concerns over
the impact of the COVID-19 pandemic are limiting the short-term
flow of investments to those economies.
    As oil prices rose, crude exporter Colombia's currency
 broke a four-session losing run, while Chile's peso
 tracked a rise in copper prices.   
    
    Key Latin American stock indexes and currencies at 1409 GMT:
  Stock indexes           Latest   Daily %
                                   change
 MSCI Emerging Markets    1085.15    -0.22
                                   
 MSCI LatAm               1998.68     1.71
                                   
 Brazil Bovespa         100949.45      0.9
                                   
 Mexico IPC              36281.24     0.58
                                   
 Chile IPSA               3829.45     0.09
                                   
 Argentina MerVal               -        -
                                   
 Colombia COLCAP          1239.88     0.61
                                   
                                          
      Currencies          Latest   Daily %
                                   change
 Brazil real               5.3025     1.18
                                   
 Mexico peso              21.5869     0.80
                                   
 Chile peso                 765.5     0.89
                                   
 Colombia peso             3714.2     0.61
                                   
 Peru sol                  3.5198     0.59
                                   
 Argentina peso           74.7600    -0.07
 (interbank)                       
                                   
 

    
 (Reporting by Susan Mathew and graphic by Aaron Saldanha in
Bengaluru;)
  

Source: Read Full Article