EMERGING MARKETS-Chile's peso, Brazil's real propped up by commodity rally
By Shashank Nayar
May 10 (Reuters) - Most Latin American currencies and stocks gained on Monday, led by surging metal and oil prices on hopes of rising demand and a weaker dollar, while Brazil's real hovered near four-month highs after marking its strongest week this year.
Chile's peso CLP= was the top performer, rising 0.5% to its highest level since July 2019 as copper prices scaled record highs. MET/L
"The global boom in industrial metal prices – especially copper – is clearly a boon that generates about $4 billion in monthly exports for Chile," said Chris Turner, global head of markets at ING in a note.
Consumer prices in Chile are expected to nudge up 0.3% in May, according to a central bank poll of traders, while inflation in 12 months is expected to hit 3.05%. nAQN0454OW
Brazil's real BRBY, BRL= rose 0.3%, hovering near a four-month high as prices of iron ore - a top export - hit record highs. IRONORE/
With economic growth set to speed up in top iron ore buyer China, investors have been pricing in higher demand for the steel-making material.
Shares of Brazilian iron ore miners Vale VALE3.SA, Companhia Siderurgica Nacional CSNA3.SA and USIMINAS USIM5.SA rallied between 3.6% to 5%, pushing the Bovespa index .BVSP to a near four-month high.
The currencies of oil exporters Mexico and Colombia MXN=, COP= firmed 0.1% and 0.6% respectively, as oil prices jumped after a cyberattack forced the shutdown of major fuel pipelines in the United States and raised concerns about supply disruption. O/R
Other Latin American currencies like the Argentine peso ARS= slipped 0.1% while the Peruvian sol PEN= was unchanged.
Argentina's President Alberto Fernandez said he hoped a new, sustainable deal with the International Monetary Fund that would allow his heavily indebted country to develop can be reached soon. nS8N2IU03E
MSCI's index of emerging market currencies .MIEM00000CUS rose 0.4% to a record high, while stocks .MSCIEF rose to a 10-day high, with risk-driven assets set to benefit largely from loose monetary policy in the developed world.
The dollar held at 2-1/2 month lows on Monday as a weak U.S. employment report spurred investors to unwind growing long positions in the greenback, and pushing flows into high-yield, high-risk assets. USD/
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
(Reporting by Shashank Nayar in Bengaluru; Editing by Alison Williams)
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