EMERGING MARKETS-Brazil stocks, currency rise but political woes linger
(Updates with closing prices, details from Mexico) SAO PAULO, May 30 (Reuters) - Brazil's benchmark Bovespa equities index rose for a second straight day on Wednesday as a decline in state-run oil company Petroleo Brasileiro SA was offset by gains in transport and consumer shares after plunging in recent weeks.
Trading has been jittery due to wariness about the government's resolve and ability to maintain market-friendly policies in the midst of disruptive work stoppages by the nation's truckers and oil workers.
The index spent the morning in the red, but a pickup in trading helped move it into positive territory later in the session.
Petrobras was the center of attention as the company's preferred and common shares fell 1.7 percent and 0.2 percent, respectively, as workers at the company walked off the job.
Various media outlets, including Reuters, reported that President Michel Temer may force Petrobras to ditch its market-based fuel pricing system.
The losses in Petrobras' shares had been steeper until Temer's office said he was committed to the firm's financial health and would preserve its pricing policies.
Traders in general said they were worried about the stability of the already fragile government. Temer on Tuesday was forced to swat away questions from journalists about the possibility of a military coup.
Market participants are also trying the measure the costs of a 10-day truckers' strike that is now winding down.
"The market remains very fragile," said one Rio de Janeiro-based trader. "Despite improvements, the situation is not resolved, and losses still need to be figured out." The Bovespa, which has fallen about 10 percent since May 16, closed up 0.9 percent, amid a generally positive day for equities in Latin America. The country's currency, the real , edged up 0.07 percent to about 3.74 reais per dollar.
Among the gainers on the Bovespa was electronics and appliance retailer Magazine Luiza SA, ending up 3.8 percent, after fears of major supply disruptions subsided.
Also trading higher was highway operator Ecorodovias , which climbed 3 percent, recouping dramatic losses over the last two weeks as politicians lowered toll revenue targets to assuage the protesting truckers.
Meanwhile, Mexico's S&P/BMV IPC stock index closed up slightly, while the Mexican peso climbed 0.5 percent against the dollar.
Key Latin American stock indexes and currencies at 2200 GMT: Stock indexes Latest Daily YTD pct pct change change MSCI Emerging Markets 1,112.75 -1.2 -3.94 MSCI LatAm 2,565.09 0.23 -9.3 Brazil Bovespa 76,753.61 0.9 0.46 Mexico S&P/BMV IPC 44,715.88 0.15 -9.40 Chile IPSA 5,484.90 -0.17 -1.43 Chile IGPA 27,786.61 -0.16 -0.69 Argentina MerVal 28,389.40 0.23 -5.58 Colombia IGBC 12,302.82 0.80 8.20 Venezuela IBC 34,894.65 0.57 2662.54 Currencies Latest Daily YTD pct pct change change Brazil real 3.7367 0.07 -11.33 Mexico peso 19.7290 0.50 -0.15 Chile peso 627.80 0.32 -2.09 Colombia peso 2,877.50 0.99 3.63 Peru sol 3.270 0.18 -1.01 Argentina peso 24.925 -0.20 -25.38 (interbank) Argentina peso 25.85 -0.19 -25.61 (parallel) (Reporting by Gram Slattery; additional reporting by Paula Arend Laier Editing by Susan Thomas)
