EMERGING MARKETS-Latam stocks rise as investors shrug off U.S. shutdown
* Brazil Bovespa up 1 pct, Mexico IPC gains 1.78 pct
SAO PAULO, Oct 1 (Reuters) - Latin American bourses posted
gains and Brazilian stocks capped a five-day slide on Tuesday as
investors bet that a U.S. government shutdown would be unlikely
to drag on long enough to affect global economic growth.
Mexico's IPC index rose by its most in nearly two
weeks, while Chile's bourse gained for the first session
The U.S. Congress missed a midnight deadline to agree on a
spending bill, resulting in up to a million government workers
being put on unpaid leave.
But investors drove global stocks higher on Tuesday amid
hopes that the shutdown would be short-lived and would help
boost the case for a delay in any tapering of monetary stimulus
from the Federal Reserve.
"The longer they take to agree on a budget or on raising the
debt ceiling, the longer the Fed should take before tapering the
stimulus," said Alvaro Bandeira, a partner with Orama
Investimentos in Rio de Janeiro.
Brazil's benchmark Bovespa stock index rose by its
most in nearly two weeks, adding 1 percent to 52,863.37 points.
The rise was led by a 1.6 percent gain in shares of state-run
oil company Petroleo Brasileiro SA, known as
Shares of debt-laden rival OGX Petroleo e Gas Participacoes
SA, controlled by Brazilian tycoon Eike Batista,
swung widely between positive and negative territory.
The company missed a $45 million bond interest payment due
on Tuesday, moving the firm closer to what could be the
largest-ever Latin American corporate debt default.
Shares of homebuilders rose after Brazil's top economic
policy-making body announced late Monday that Brazilians will be
allowed to apply money held in their government-run pension
funds towards the purchase of more expensive homes, which could
boost demand in the country's recovering housing sector.
MRV Engenharia SA shares rose 3 percent, while
rival builder Cyrela Brazil Realty SA advanced 1.7
Mexico's IPC index capped a three-day decline, rising
1.78 percent to 40,901.95.
Shares of telecommunications firm America Movil
climbed 2 percent, contributing most to the index's rise, while
bottling firm Femsa advanced 3 percent.
Chile's IPSA index rose 0.56 percent as shares of
retailer Falabella gained 1.4 percent.
Latin America's key stock indexes at 1508 GMT:
Stock indexes Latest Daily YTD pct
MSCI LatAm 3,346.82 1.32 -13.03
Brazil Bovespa 52,863.37 1.0 -13.27
Mexico IPC 40,901.95 1.78 -6.42
Chile IPSA 3,845.29 0.56 -10.60
Chile IGPA 18,895.95 0.33 -10.32
Argentina MerVal 4,860.17 1.59 70.28
Colombia IGBC 14,108.05 0.33 -4.13
Peru IGRA 15,821.77 -0.62 -23.30
Venezuela IBC 1,781,096.0 -0.75 277.80
(Reporting by Asher Levine and Priscila Jordao)
(c) Reuters 2013. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.