by * Mexico early Jan costs exceed market forecasts * Petrobras hikes gasoline costs earlier than board vote on Lula’s CEO choose * Venezuela’s inflation slows to 234% in 2022, vp says * Brazil inflation barely larger than forecast in early Jan * Stocks up 0.6%, currencies up 0.1% By Bansari Mayur Kamdar Jan 24 (Reuters) – Latin American stocks outperformed their rising market friends on Tuesday, extending beneficial properties for a 3rd straight session, whereas traders assessed knowledge from Brazil and Mexico that confirmed inflation rose greater than anticipated in early January. The MSCI’s index for Latin American stocks rose 0.6% in comparison with a tepid broader EM index. Brazil’s Bovespa index gained 0.5%, with banking stocks main beneficial properties. Shares of Brazilian state-run oil firm Petrobras rose 0.5%, additionally offering a lift to the Bovespa index, on saying it can improve refinery gate gasoline costs, as its board of administrators prepares to vote on President Luiz Inacio Lula da Silva’s choose for the chief govt function. Data confirmed Brazil’s annual client costs got here in barely above market expectations within the month to mid-January, as policymakers in Latin America’s largest economic system work to decrease inflation to the central financial institution’s goal. Latin America’s currencies index added 0.1% by 1450 GMT, with the Brazilian actual advancing 0.9%. In Mexico, headline inflation accelerated and exceeded expectations in early January, knowledge from the nationwide statistics company confirmed, marking the primary month-to-month pickup since September as markets brace for recent rate of interest hikes forward. “That can be powerful information for Mexican equities, as a result of it might additional cool discuss of Banxico probably ending its tightening marketing campaign previous to the Fed,” wrote Greg Anderson, world head of FX technique at BMO Capital Markets, wrote in a word. “But for the peso, with the best way that it has traded way more on the carry story than on the equities story over the previous 12 months, excessive inflation is nice information.” The Mexican peso weakened 0.3% towards the greenback, whereas stocks in Mexico rose 0.3%. Elsewhere in Latin America, currencies of commodity producers reminiscent of Chile’s peso and Colombia’s peso added 1.1% and 0.1%, supported by agency commodity costs. The Peruvian sol slipped 0.1%. Venezuelan Vice President Delcy Rodriguez stated inflation within the South American nation hit 234% in 2022, representing a slowdown from the earlier 12 months, because it struggles with a deep and prolonged financial disaster. Among different rising market friends, Hungary’s forint gained 1.2% towards the euro after the National Bank of Hungary saved its base price at 13% the best within the European Union, as inflation exhibits no respite. Key Latin American inventory indexes and currencies at 1450 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1038.73 0 MSCI LatAm 2307.16 0.72 Brazil Bovespa 112437.24 0.63 Mexico IPC 54497.19 0.29 Chile IPSA 5314.31 0.05 Argentina MerVal 248686.43 -0.669 Colombia COLCAP 1331.10 -0.05 Currencies Latest Daily % change Brazil actual 5.1577 0.78 Mexico peso 18.8532 -0.28 Chile peso 805.2 0.89 Colombia peso 4545.86 0.23 Peru sol 3.878 -0.36 Argentina peso (interbank) 184.7000 -0.18 Argentina peso (parallel) 377 -0.27 (Reporting by Bansari Mayur Kamdar and Amruta Khandekar in Bengaluru Editing by Alistair Bell)
