Here’s some much needed good news for Brazil’s ailing manufacturing scene.
Canon, the Japanese camera and optical equipment maker, on Monday announced plans to set up a production factory in the country’s Amazonas state in the northwest. The investment, at ¥210m ($2.6m), is not exactly jaw-dropping. But it is a symbolic vote of confidence in Brazil at a time when investor sentiments are at a low.
Latin American markets enjoyed solid gains on Tuesday as risk appetite was up on hopes that the Greek parliament will vote in favour of the austerity package dicated by the IMF and EU in order to get aid. Region’s currencies also strengthened on expectations that Greece will avoid default on its sovereign debt. The MSCI Latin America index rallied 2.18 per cent, its biggest one-day gain since February.
MSCI Inc has decided to keep the status of South Korea and Taiwan as emerging markets, saying they will be ready to graduate when they have opened up their markets and relaxed currency controls. Both countries failed to pass the test in the past few years due to market access issues.
The index provider also delayed its decision until December on whether to upgrade the United Arab Emirates and Qatar to emerging-market status from their current frontier classification.
Latin American market were higher on Tuesday as investors bet on risky assets on hopes that Greece can avoid forced default of its sovereign debt. Major regional indices mostly rose while their currencies strengthened.
Latin American markets have been dragged down with the rest of the world due to fresh concerns over the eurozone sovereign debt crisis and investors found little consolation in US economic data. The region’s currencies also extended losses, on fears that a default in Greece or Ireland would send shock waves through world credit market.
Latin American markets were mostly higher on Tuesday, as a raft of data from China, indicated that the world’s second-largest economy, can successfully navigate a path between controlling inflation and maintaining growth. US retail sales also boosted Mexican equities. Commodity driven economies of Latin America have strong economic and trade ties to China and are sensitive to the country’s growth. The region’s currencies also strengthened against the dollar. The MSCI Latin American index was rose 1.1 per cent to 4,352.
Latin American markets suffered sharp sell-offs on Monday, as Peruvian stocks plummeted by the most on record after investors reacted to the victory of left-wing presidential candidate Ollanta Humala. Concerns about slowing US growth also weighed on the regional indices. The MSCI Latin American index fell 2.2 per cent to 4,359, its sharpest one-day drop in the past 4 weeks.
Peru’s Lima General Index plummeted on Monday, down 12.4 per cent to 18,586, more than the technical definition of a correction and erasing almost all of the gains made since the beginning of May. Trading was suspended early. Humala won a bitter election in which he fought against right-wing candidate Keiko Fujimori, with markets closely tracking opinion polls during the past few months.
Moody’s on Tuesday upgraded Colombia’s foreign-currency debt to the lowest investment grade level – Baa3 from Ba1. The upgrade is the second for the country, after Standard and Poor’s moved it up from the junk bond status in March.
Obtaining ‘investment grade’ level from two agencies will push Colombia into the sight of institutional investors, whose rules require at least two such ratings for asset allocations.
Latin American markets rose on Friday, capping a week of rises throughout the region, as commodity prices rose, with oil reclaiming $100 a barrel level, lifting the energy and materials stocks. The MSCI Latin American index rose 1.3 per cent to 4,445, gaining 3 per cent over the week and reaching its highest level since May 10.
Brazil’s Bovespa index inched 0.3 per cent higher to 64,295, rising for the fourth consecutive day. Brazilian stock hit their lowest levels since July of 2010 in the recent weeks, prompting investors to buy stocks deemed cheap.
Latin American markets rallied on Thursday, with the MSCI Latin American index rising 1.3 per cent to 4,387, hitting a two-week high. Major regional indices also rose, led by Brazilian and Chilean stocks. Brazil’s benchmark Bovespa index rose 1.1 per cent to 64,099, rising for the third straight day, also reaching a two-week high.
Latin American stocks sold off on Monday, following the rest of the world markets lower, amid fears of slowing growth in China and, particularly, the debilitating eurozone fiscal crisis. The MSCI Latin American index fell 1.2 per cent to 4,269, its lowest level since September 2010.
Latin American markets edged lower on Thursday, led by Brazilian and Chilean bourses. The MSCI Latin American index was 0.3 per cent lower to 4,315, even though it started the day in the positive territory.
Brazil’s benchmark Bovespa index fell 0.75 per cent to 62,367, its lowest level in 11 months. “The Brazilian markets are likely to continue trending down in the coming months as the economy cools down,” said Carlos Constantini, head of equity research at Itaú BBA.
“The fundamentals are great, but we are at the wrong time in the cycle,” he said.
Latin American markets were mixed on Thursday, as commodity prices continued to be volatile. The MSCI Latin American index started the day sharply lower but recouped some of the losses after the release of positive US economic data. The index closed 0.7 per cent lower to 4,358. However, some regional bourses were higher.
Latin American markets rose sharply on Tuesday, as strong trade data from China helped boost optimism about the global economy. China recorded a large trade surplus in April as imports of commodities and raw materials slumped and exports surged. The MSCI Latin America index rose 1.2 per cent to 4,467. However, gains in the major regional indices were not as robust to make a significant rebound from recent lows.
Region’s currencies also firmed against the US dollar, led by Brazil’s real, as investors’ expections that China’s economy will continue its growth and US and European interest rates will remain low.
Latin American stocks were mixed on Monday. The major regional indices made modest gains, while the MSCI Latin American index fell slightly, down 0.5 per cent to 4,414, mainly because it tracks individual stocks rather than indices.
Latin American currencies were mixed on Monday. Colombia’s peso fell 1 per cent, leading regional declines, as rising default risk in Greece and lingering concern about world growth led investors to close out bets that the currency will continue rising. Brazil’s real shed 0.19 per cent to 1.618 per dollar and Mexico’s peso reversed declines to gain 0.13 per cent to 11.6235 per dollar.