* 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
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