Latin American stocks followed bullish global sentiment today ahead of the Fed’s policy meeting on Tuesday. Metals producers and homebuilders gained in Mexico and Brazil, and Goldman Sachs predicted in a note that Brazil’s Bovespa would gain 16 per cent to hit a record 78,000 by the end of this year.

“Timing for a rally seems propitious because obstacles that have blocked markets are being removed, while earnings are robust and estimates we think will rise further,” wrote Goldman Sachs analysts Stephen Graham and Andre Rezende. “After 11 months of flattish trading, late 2010/early 2011 is shaping up to be an especially robust chapter of the story.” Continue reading »

Indian and Philippine stocks extended their all-time highs on Monday – adding over 1.5 per cent, on continued optimism about domestic growth. Chinese stocks were sluggish, however, ahead of the country’s autumn holiday.

Asian currencies were mainly flat against the dollar, with speculation that Asian banks will intervene to protect exporters. Thailand and Taiwan both released better than expected export data. Continue reading »