Latin American stocks gained on Friday as a strong revival of Chinese manufacturing eased concerns about the global economic recovery and a weak dollar boosted the price of commodities. Global bourses were cheered by robust Chinese factory data. Manufacturing in the world's second-biggest economy rebounded last month, easing recent worries about decelerating growth in the Asian giant.
China is Brazil's top trading partner and a leading buyer of Latin American commodity exports. The dollar also weakened against a basket of major currencies, boosting commodities such as petroleum. The MSCI Latin American stocks index gained 1.39 percent, a day after closing out its best quarter in a year.
Brazil's Bovespa index gained 1.15 percent to close above 70,000 for the first time since April 15. The gains came despite Sunday's presidential election - typically a harbinger of volatility in Brazil. "The market has absorbed the election well," said Julio Hegedus, chief economist with InterBolsa in Sao Paulo. "The country is a more mature democracy now."
Presidential candidate Dilma Rousseff of the ruling Workers' Party has a good chance of winning in a single round of voting, according to public opinion polls. Analysts broadly expect Rousseff to continue the economic policies of her mentor, President Luiz Inacio Lula da Silva, which are credited with helping bring stability to the once-chronic economic underperformer. Shares of state-controlled energy company Petrobras advanced 0.77 percent, as US crude oil futures ended up more than 2 percent for the day.
The stock had tumbled earlier this year ahead of a massive share sale. But after last week's $70 billion offering - the world's largest - the shares gained all but one session this week. Mining company Vale rose 0.97 percent, notching its tenth straight session of gains for a total advance of almost 12 percent. The company announced last week that its cash generating ability would allow it to buy back up to $2 billion in shares and return to investors $2.75 billion over the next five months.
Mexico's IPC index advanced 1.43 percent and marked its highest close since April 23. Shares of miner Grupo Mexico jumped 6.2 percent. Leading retailer Walmex gained 1.77 percent to reach its highest close since March 2 as investors expect good news from next week's earnings report, analysts said.
Telecom giant America Movil, controlled by billionaire Carlos Slim, climbed 1.19 percent. Chile's blue chip IPSA index rose 0.16 percent. The third quarter was the best such period for that index in more than a year. Chile's top retailer Falabella gained 1.05 percent. That stock has recently been trading near life highs. Fellow retailer Cencosud moved up 1.66 percent.
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