EMERGING MARKETS-Latam markets steady in quiet trading; Nigeria bonds rise after rate hike
* Brazil consumer prices up in mid-March, annual inflation slows * Peru economy likely grew 2-3% in February - minister * Nigeria hikes rates for second straight time * FX up 0.2%, stocks up 0.5% (Updated at 4 p.m. ET/2000 GMT) By Ankika Biswas and Lisa Pauline Mattackal March 26 (Reuters) - Most Latin American currencies and equity markets were steady on Tuesday in muted trading, while Nigeria's sovereign international dollar bonds rose following a 200 basis-point rate hike. The MSCI index for Latam currencies was up 0.2% and a gauge of regional stocks firmed 0.5%, in the green for the first time in four sessions. Trading was quiet on a data-light day and ahead of the Good Friday holiday on which many markets around the world will be closed. Investors also looked ahead to a key U.S. inflation print on deck Friday for further confirmation on the path of interest rates in the world's largest economy, and how that could impact appetite for riskier emerging market assets. "We think Fed rate cuts combined with a U.S. soft landing and relatively benign financial market conditions should lead to an overall dollar downtrend against many G10 and emerging market currencies," analysts at Wells Fargo said. Meanwhile, Nigeria raised its rate to 24.75%, its second straight hike in an attempt to tame soaring inflation, boosting sovereign international dollar bonds. The 2029 note saw the biggest rise, up 1.4 cents as high as 97.91 cents on the dollar, its highest price in almost two years, according to Tradeweb data. The bond was last trading at 97.565 cents on the dollar. "Governor Cardoso's desire to bring inflation crisis to a close and also strengthen the naira will lead to more tightening. We have penciled in further 100-bps hikes in May and July each before the hiking cycle is brought to a close," David Omojomolo, an Africa-focused economist with Capital Economics wrote. In Latin America, data showed Brazil's consumer prices rose slightly more than expected in their mid-March reading but the 12-month print slowed to its lowest level since last year. The real was down XX% against the dollar. Brazil's central bank said discussions on more modest interest rate cuts in the future emerged within the rate-setting committee. Colombia's peso jumped 1.3% to its highest in three months at 3845.5 to the dollar. Mexico's stock exchange outperformed other regional bourses, rising 1.2%, helped by a 4.2% rise in shares of Grupo Banorte. Peru's Economy Minister Jose Arista highlighted the economy likely grew between 2%-3% in February versus the year-ago period, a positive sign as it aims to climb out of recession. Highlights ** Hungary cut its rate to 8.25%, slowing the pace of easing after its currency fell to a one-year low ** Mexico's Pemex bids for more favorable financing rates with sustainability plan Key Latin American stock indexes and currencies at 2000 GMT: Latest Daily % change MSCI Emerging Markets 1039.47 0.32 MSCI LatAm 2517.89 0.48 Brazil Bovespa 126897.71 -0.03 Mexico IPC 57227.95 1.19 Chile IPSA 6520.39 0.4 Argentina MerVal 1214588.18 0.139 Colombia COLCAP 1318.11 -0.86 Currencies Latest Daily % change Brazil real 4.9803 0.06 Mexico peso 16.6505 0.14 Chile peso 979.9 0.07 Colombia peso 3845.5 1.27 Peru sol 3.6953 -0.01 Argentina peso 856.5000 0.00 (interbank) Argentina peso 995 2.51 (parallel) (Reporting by Ankika Biswas and Lisa Mattackal in Bengaluru; editing by Ed Osmond and Marguerita Choy )
