EMERGING MARKETS-Latam stocks, FX outperform emerging market peers

* Chile SENBANK to keep interest rate at 11.25% this week – poll * Brazil and Argentina discuss common currency * Peru arrests 200 in Lima as anti-government protests flare * Latem FX up 0.4%; Stocks added 0.9% By Bansari Mayur Kamdar Jan 23 (Reuters) – Latin American assets outperformed their emerging market peers on Monday, supported by stronger commodity prices, while the leaders of Brazil and Argentina signaled their aim for greater economic integration. The common South American currency in which was published. MSCI’s index of Latin American currencies was up 0.4% by 1454 GMT. Regional stocks added 0.9%, with Argentina’s Marvel index leading Latin American peers in early trading. Latham stocks have outperformed the region’s currencies after three consecutive years of underperformance since the start of 2023. “While there is some evidence of improvement in fundamentals, whether it’s trade regionalization benefiting Mexico or commodity markets benefiting Brazil, these markets remain dynamic and uncertain,” said Charles Sannucks, emerging markets analyst at Oldfield Partners. “What has changed, however, is a dramatically different valuation landscape – not only to the extent that valuations are lower, but also to a significant dichotomy between some growth stocks versus deeply overlooked value names.” Brazil’s Bovespa index erased all of its early gains as losses in banking stocks offset gains in energy and materials stocks. The Brazilian real gained 0.2% against the dollar. Brazil and Argentina are aiming for greater economic integration, including the development of a common currency, Brazilian President Luiz Inacio Lula da Silva and Argentine leader Alberto Fernandez said in a joint article they wrote. “Markets are unlikely to be swayed by news on a single currency, not least because it would take years to implement, if implemented,” said Kimberly Spurfacher, emerging markets economist at Capital Economics. Top copper producer Chile’s peso added 0.4%, tracking red metal prices on improving demand in top consumer China, lower inventories and a weaker dollar. Chile’s central bank is expected to keep the benchmark interest rate at 11.25% at its January meeting later this week, a Reuters poll of traders showed, ahead of an easing cycle that would take it to 6.5% every 12 months. Peru’s sol slipped 0.2% against the dollar. As deadly anti-government protests spread across the country, Peruvian police arrested more than 200 people accused of illegally entering the campus of the University of Lima. Authorities in Cusco closed Machu Picchu’s Incan Citadel and the Inca Trail. The Mexican peso and the Colombian peso gained 0.2% and 0.8% respectively against the greenback. Key Latin American stock indices and currencies at 1454 GMT: Stock indices Latest Daily % change MSCI Emerging Markets 1039.08 0.27 MSCI LatAm 2293.13 0.86 Brazil Bovespa 112019.06 -0.02 Mexico IPC 53968.39 0.04 Chile IPSA 5277.14 0.79 Argentina MerVal 251897.82 1.734 1.734 Latest Daily Currencies % Change Brazil Real 5.1921 0.30 Mexico Peso 18.8368 0.10 Chilean Peso 811.2 0.78 Colombian Peso 4564.63 0.56 Peru Sol 3.865 -0.58 Argentine Peso (Interbank) 184.3700 -0.50 -0.50 -0.50 Harvey)

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