EMERGING MARKETS-Brazil stocks jump on Yellen comments

Reuters

* Brazil Bovespa rises 1.97 pct, Mexico IPC up 0.81 pct

SAO PAULO, Nov 14 (Reuters) - Brazilian stocks gained their

most in nearly two months on Thursday after Janet Yellen, the

probable next head of the U.S. Federal Reserve, suggested

monetary stimulus would not be drawn down any time soon.

Mexico's IPC index rose for the second straight

session, while Chile's bourse edged higher.

Yellen told the U.S. Senate Banking Committee on Thursday

that high unemployment, weak inflation and an economy running

below potential meant the Fed had "more work to do."

Monetary stimulus from the Fed has helped boost global

liquidity and underpin demand for Latin American equities,

especially the most widely-traded shares, which tend to be

preferred by foreign investors.

"The expectation that Yellen will maintain policy as it is

and start tapering (stimulus) only next year led to a rally in

riskier markets," said Newton Rosa, chief economist with

SulAmerica Investimentos in Sao Paulo.

Brazil's benchmark Bovespa stock index rose nearly 2

percent to its highest level in a week.

Shares of state-run oil company Petroleo Brasileiro SA

, known as Petrobras, gained 2 percent, contributing

most to the index's gains, while Itaú Unibanco Holding SA

, Brazil's largest non-government bank, advanced 2.1

percent.

Shares of Cia Siderúrgica Nacional SA, Brazil's No. 2

steelmaker by revenue, jumped 4 percent after third-quarter

profit beat estimates.

Mexico's IPC index rose its most in over two weeks,

adding 0.81 percent to 40,087.07 points.

Lender Grupo Financiero Banorte climbed 2.4

percent, contributing most to the index's gains, while mining

firm Grupo Mexico advanced 2 percent.

Chile's IPSA index rose for the second session in

three, adding 0.3 percent as shares of retailer Falabella

rose 1.9 percent.

Latin America's key stock indexes at 1644 GMT:

Stock indexes daily % YTD %

Latest change change

MSCI LatAm 3,286.32 1.61 -14.84

Brazil Bovespa 53,260.98 1.97 -12.62

Mexico IPC 40,087.07 0.81 -8.28

Chile IPSA 3,734.96 0.3 -13.17

Chile IGPA 18,470.56 0.17 -12.34

Argentina MerVal 5,398.28 2.93 89.13

Colombia IGBC 13,439.70 0.59 -8.67

Peru IGRA 15,725.77 -0.02 -23.77

Venezuela IBC 2,368,932.9 -0 402.49

5

View Comments (0)