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EMERGING MARKETS-Stocks pop higher as investors scale back tightening bets

       * EM stocks index set to end week higher
    * Latam stocks join global rally
    * Brazil's real fall; inflation tops estimates
    * Colombian peso at lowest since March 2020

    By Susan Mathew
    June 24 (Reuters) - Emerging market shares rose on Friday as
investors started to scale back bets on the extent of monetary
policy tightening by major central banks, helping a gauge of
stocks erase losses for the week.
    MSCI's index of emerging market shares jumped 1.6%
and was on track to end a central bank heavy week about 0.6%
higher after two weeks of losses.
    Its currencies counterpart firmed 0.2%,
cutting almost all weekly losses.
    Markets has taken a hit earlier this week as investors
fretted over a likely recession as central banks stuck to their
aggressive tightening policies.
    But as commodity prices fell, inflation fears eased somewhat
and markets brought forward their views on the timing of rate
cuts to counter a possible recession.
    This prompted some flows into risky assets.
    In Latin America, stocks joined a global rally, with
regional bourses up between 0.9% and 0.1%.
    But surging inflation kept investors on edge. A day after
Mexican inflation data came in higher than expected, data showed
Brazilian consumer prices rose more than expected in the month
to mid-June, despite central bank attempts to control it.

    Brazil's real fell 0.5%, but Mexico's peso
outperformed, up 0.7% against a weaker dollar.
    "The global energy crisis helps Mexico as a producer," said
Juan Perez, director of trading at Monex USA.
    Perez added that geopolitical changes in Latin America,
which has seen some leftist candidates come to power, should
support the peso as it favors Mexico's current leftist
    Rising prices have reduced the popularity of Brazil's
far-right President Jair Bolsonaro ahead of elections in
October. Analysts have warned to brace for volatility in the run
up to the elections as former president Luiz Inacio Lula da
Silva retains his lead over the incumbent.
    As copper prices plunged on the uncertainty over demand amid
growth fears, Chile's peso dipped another 0.5% to record
    The currency has fallen more than 15% from this year's peak
hit in late March, with a strike at Codelco, the largest copper
producer in Chile and the world, leaving investors worries about
a hit to copper output.
    On Thursday, union leaders at Codelco reached an agreement
with the company to end the strike.
    In Colombia, the peso slumped 1% to over two-year
lows, with eyes on President-elect Gustavo Petro as he firms up
congressional allies ahead of the administration's takeover in

    Key Latin American stock indexes and currencies at 1400 GMT:
   Stock indexes            Latest    Daily %
 MSCI Emerging Markets       1010.48     1.52

 MSCI LatAm                  2039.79    -0.04

 Brazil Bovespa             98125.88     0.05

 Mexico IPC                 46692.01     0.07

 Chile IPSA                  4976.97      0.9

 Argentina MerVal                  -        -

 Colombia COLCAP             1348.77     0.74

       Currencies           Latest    Daily %
 Brazil real                  5.2521    -0.45

 Mexico peso                 19.9109     0.45

 Chile peso                    910.6    -0.89

 Colombia peso                4120.6    -0.59
 Peru sol                          -        -

 Argentina peso             124.2300    -0.10

 (Reporting by Susan Mathew in Bengaluru; Editing by William

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