SAO PAULO, June 29 (Reuters) - Brazilian equities jumped more than 1.5 percent on Friday as solid gains on Wall Street and relative political calm helped lure investors back into local stocks, many of which have fallen dramatically in recent weeks.
Emerging markets worldwide have been hit hard by concern about a global trade war, with Brazil's benchmark Bovespa index among the major losers, falling almost 15 percent in the second quarter alone. Domestic issues, such as a highly uncertain presidential election scheduled for October, have also weighed on domestic equities.
But in recent weeks, investors have often jumped back into Brazilian stocks during times of geopolitical calm, amid bets that some sectors are oversold.
Friday's rally was also spurred by traders looking to boost their portfolios before the end of the second quarter, some market participants said.
"The market is taking advantage of this moment of strength abroad to improve portfolios' results at the end of the month, which coincides with the end of the quarter," said Ari Santos, head of the Bovespa desk at Sao Paulo brokerage H.Commcor.
The Bovespa had climbed some 1.52 percent by mid-day, following a 1.63 percent gain on Thursday.
Elsewhere throughout Latin America, equities markets were also up, with Mexico's IPC index and Chile's IPSA index climbing 0.72 percent and 0.8 percent, respectively, buoyed by a strong day on Wall Street, where the Dow Jones Industrial Average was up over 1 percent in morning trade.
The Bovespa's biggest gainer was B2W Cia Digital SA , Brazil's No. 1 e-commerce firm by most measures, which jumped some 5.8 percent after analysts at Morgan Stanley hiked their price target on the stock to 27 reais from 21 reais.
Shares in meatpacker JBS SA climbed 2 percent after newsmagazine Veja reported that controlling shareholder Joesley Batista was negotiating the sale of a major stake to a Qatari sovereign wealth fund, news which JBS subsequently denied.
Brazil's major telecoms stocks, Telefonica Brasil SA and TIM Participações SA, were also performing well, climbing 1.6 percent and 1.9 percent, respectively. Reuters reported on Thursday that competitor Nextel had been put on the block, opening the door to consolidation in the crowded sector.
In currency markets, the big mover was the beleaguered Argentine peso, which weakened over 2.5 percent against the dollar to a new record low amid continued uncertainty about the local economy.
Key Latin American stock indexes and currencies at 1511 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 1069.62 2.19 -9.65 MSCI LatAm 2472.46 1.44 -13.82 Brazil Bovespa 72856.20 1.52 -4.64 Mexico IPC 47371.19 0.72 -4.02 Chile IPSA 5299.66 0.8 -4.76 Chile IGPA 26820.46 0.64 -4.15 Argentina MerVal 26906.67 0.44 -10.51 Colombia IGBC 12371.26 0.45 8.80 Venezuela IBC 88228.12 2.58 6884.83 Currencies daily % YTD % change change Latest Brazil real 3.8499 0.12 -13.94 Mexico peso 19.6375 0.37 0.31 Chile peso 650.5 -0.22 -5.51 Colombia peso 2933.9 0.39 1.64 Peru sol 3.276 0.00 -1.19 Argentina peso 28.8500 -2.53 -35.53 (interbank) Argentina peso 28.5 -1.23 -32.53 (parallel) (Reporting by Gram Slattery; Additional reporting by Flavia Bohone Editing by Susan Thomas)