EMERGING MARKETS-Latam risk assets gain on vaccine-led recovery bets

  • 12/30/2020
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* Brazil stocks hit record intraday high; overall debt falls * UK approves COVID-19 vaccine developed by AstraZeneca * COVID-19 cases surge across Latin America By Shashank Nayar Dec 30 (Reuters) - Most Latin American currencies rose on Wednesday, tracking broad dollar weakness and optimism around vaccine developments, while Brazil"s benchmark stock index jumped as improving economic readings offset fears of surging coronavirus cases. Chile"s peso and Colombia"s peso rose in early trade, while Brazilian stocks hit a record intraday high on improving public finances, as investor hopes for a quick economic revival were reinforced by encouraging vaccine news. The United Kingdom approved the coronavirus vaccine developed by the University of Oxford and AstraZeneca, which has an agreement with the Brazilian government to supply doses to the country. "Risk sentiment remains buoyant, with vaccine roll-out hopes providing confidence despite growing COVID-19 case numbers," said Stephen Innes, chief global market strategist at Axi. Brazil posted a $3.5 billion public sector budget deficit in November as the government maintained spending to tackle the COVID-19 pandemic, but as a share of the economy the deficit steadied and overall debt fell. Brazilian President Jair Bolsonaro said in a video broadcast that Brazil had reached its debt limit while dealing with the impact of the COVID-19 pandemic, and called for a return to normality in the country. The currency of oil-exporting nation Mexico dropped 0.2% as a surge in coronavirus-related deaths and fresh lockdowns offset gains in crude prices. More than a quarter of Latin America"s deaths have been in Mexico, which, like Brazil, has struggled with a new wave of infections, with rising hospitalizations forcing Mexico City and four states into semi-lockdowns. The Chilean peso rose 0.6% as the country looked to approve AstraZeneca"s vaccine candidate within "weeks or even days" after it receives approval from European or American regulators. Latin American currencies have lost nearly 13.2% this year, and have severely underperformed their broader emerging market peers. MSCI"s index of regional stocks rose 0.2%. Key Latin American stock indexes and currencies: Lates Daily % change t MSCI 1285.7 1.5 Emergi 1 ng Market s <.MSCI EF> MSCI 2473.9 0.26 LatAm 9 <.MILA 00000P US> Brazil 119650 0.2 Bovesp .8 a <.BVSP > Mexico 45053. 0.81 IPC 79 Chile 4194.5 -0.08 IPSA 2 <.SPIP SA> Argent 51949. 1.227 ina 71 MerVal <.MERV > Colomb 1449.1 -0.11 ia 1 COLCAP <.COLC AP> Curren Lates Daily % change cies t Brazil 5.1821 -0.01 real Mexico 19.991 -0.51 peso Chile 708.7 0.89 peso Colomb 3430.5 1.21 ia peso Peru 3.62 -0.06 sol Argent 84.14 -0.13 ina peso (inter bank) (Reporting by Shashank Nayar in Bengaluru; Editing by Jan Harvey)

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