EMERGING MARKETS-LatAm stocks rebound as North Korea tensions ease
By Bruno Federowski SAO PAULO, Aug 14 (Reuters) - Latin American stocks on Monday rebounded from last week's selloff due to a pickup in appetite for risky assets as tensions abated between the United States and North Korea. Key U.S. officials on Sunday played down the prospect of an imminent war with North Korea. Fears of a confrontation had wiped out nearly $1 trillion from global equity markets last week. "Geo-political risks have fallen somewhat," strategists at Scotiabank wrote in a report. However they cautioned that some risk remained “of North Korea antagonizing the US over the next week or so if missile testing is renewed." Emerging markets were pummeled last week after U.S. President Donald Trump warned that the U.S. military was "locked and loaded" if North Korea acted unwisely after threatening to land missiles in the sea near the U.S. Pacific territory of Guam. Mexico's S&P/BVM IPC stock index rose 1.1 percent after posting its biggest weekly decline in eight months last week. Brazil's benchmark Bovespa stock index touched the highest level since May. Shares of power utility Cia Paranaense de Energia SA led the gains on the Brazilian index, rising for a second day on a smaller-than-expected drop in second quarter operating profits and a decision to cancel a sale of new stock. Moves in Latin American currency markets, however, were subdued as investors watched for developments on the domestic and regional fronts. The Mexican peso firmed 0.3 percent as traders awaited negotiations between the United States, Mexico and Canada over the North American Free Trade Agreement (NAFTA), set to take place this year. Meanwhile, the Brazilian real seesawed ahead of an expected revision to the government's fiscal goal. Reuters reported last week that the government was poised to target a wider primary budget deficit this year and the next as lawmakers refused to back tax hikes. Key Latin American stock indexes and currencies at 1620 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 1054.03 1.08 20.94 MSCI LatAm 2791.14 1.31 17.7 Brazil Bovespa 68456.20 1.63 13.66 Mexico S&P/BVM IPC 51194.92 1.09 12.16 Chile IPSA 5072.38 0.78 22.19 Chile IGPA 25308.17 0.74 22.06 Argentina MerVal 22391.18 3.5 32.35 Colombia IGBC 10808.68 0.06 6.72 Venezuela IBC 186966.14 2.01 489.70 Currencies daily % YTD % change change Latest Brazil real 3.1777 -0.14 2.25 Mexico peso 17.7580 0.30 16.81 Chile peso 647.6 -0.19 3.57 Colombia peso 2966.25 0.26 1.19 Peru sol 3.243 0.03 5.27 Argentina peso (interbank) 17.2400 2.73 -7.92 Argentina peso (parallel) 18.12 1.99 -7.17 (Reporting by Bruno Federowski; Editing by W Simon)