Latin American stocks rose to their highest level since the beginning of January on Friday as better than expected jobs data in the United States helped spur investor appetite for riskier assets. The MSCI Latin American stocks index rose 1.4 percent, extending this week's rally.
-- Brazil Bovespa up 0.8pc, Mexico IPC up 1.2pc
The region's key stock indexes broke through key technical barriers this week, fanning hopes that equities could begin the second quarter strong after a disappointing start to the year. US employment notched a second straight months of solid gains as the jobless rate fell to a two-year low of 8.8 percent. The data underscored a decisive shift in the labour market which should help bolster consumer demand in the United States, a key trading partner for Latin America.
"The data reinforces expectations for a recovery of the American economy and is strengthening the expectations for global GDP this year," said Alessandra Ribeiro, an economist with the Tendencias Consultoria in Sao Paulo. Underpinning such optimism, data on Friday showed Brazil's industrial output rose in a surprisingly strong pace in February..
Brazil's benchmark Bovespa stock index was up 0.81 percent to 69,145.68, hitting a two-month high following three straight sessions of gains. The index's short-term resistance level is now at 70,000 after breaking through 68,000 on Thursday, said Rossano Oltramari, an analyst with the brokerage XP Investimentos.
Financial stocks led the Bovespa's gain. Exchange operator BM&FBovespa rose 2.87 percent, credit card operator Cielo gained 1.88 percent and rival credit card operator Redecard rose 2.33 percent. Mexico's IPC stock index rose 1.20 percent, having hit a two-month high on the strong employment data from the United States, Mexico's biggest trading partner.
The index has broken out of a descending channel on its chart, suggesting the IPC may be stabilising after a steady downtrend since January that has cost the gauge nearly 3 percent during the first quarter. America Movil was the index's biggest weighted gainer. Shares in Latin America's largest cell phone provider jumped 1.2 percent to 34.94 pesos.
Mexico's top retailer Wal-Mart de Mexico surged 1.4 percent to 36.13 pesos. Chile's IPSA index rose 1.7 percent to nearly 4,703 points, also spurred by the upbeat US payroll data. The IPSA largely disconnected from markets abroad early in the year, when the central bank announced a $12 billion intervention in foreign exchange markets.