EMERGING MARKETS-Latam stocks rise as investors shrug off U.S. shutdown
* Brazil Bovespa up 1.61 pct, Mexico IPC gains 2.86 pct
(Updates prices, adds Odebrecht announcement)
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 was unlikely to
drag on long enough to affect global economic growth.
Mexico's IPC index rose by its most on Tuesday in
nearly two years, while Chile's bourse gained for the
first session in six.
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 1.61 percent to 53,179.46
The rise was led by a 14.29 percent gain in shares of
debt-laden rival OGX Petroleo e Gas Participacoes SA,
controlled by Brazilian tycoon Eike Batista, which had 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.
Mexico's IPC index shot up 2.86 percent to 41,335.27,
capping a three-day decline and notching the biggest one-day
gain since November, 2011.
The bourse's gains strengthened after an announcement that
Brazilian conglomerate Odebrecht plans to spend $8.1
billion in Mexico in the next five years.
Shares of telecommunications firm America Movil
climbed 3.31 percent, contributing most to the index's rise,
while bottling firm Femsa advanced 3.75 percent.
Chile's IPSA index rose 0.83 percent as shares of
retailer Falabella gained 1.93 percent.
Latin America's key stock indexes at 2234 GMT:
Stock indexes daily % YTD %
MSCI LatAm 3,372.75 2.11 -11.19
Brazil Bovespa 53,179.4 1.61 -12.75
Mexico IPC 41,335.2 2.86 -5.42
Chile IPSA 3,855.70 0.83 -10.36
Chile IGPA 18,953.2 0.63 -10.05
Argentina MerVal 4,906.52 2.56 71.90
Colombia IGBC 14,114.3 0.38 -4.09
Peru IGRA 15,791.0 -0.81 -23.45
Venezuela IBC 1,784,58 -0.56 278.54
(Writing by Alexandra Alper)
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