EMERGING MARKETS-Chilean peso dwarfs its Latin American peers as copper prices gain ground

*Copper prices rise as China reopens stakes outpace COVID surge *Brazil’s federal tax revenue increased 3.25% in November *Peru’s president names Alberto Otarola as prime minister *Brazilian reinsurer IRB jumps as net gain in October * Argentina’s economic activity increased 4.5% October (Update prices, details; add comments, chart) By Shreyashi Sanyal and Bansari Mayur Kamdar Dec 21 (Reuters) – The Chilean peso was the The biggest gain among major Latin American currencies on Wednesday as copper prices regained their footing on hopes that China’s top consumers COVID-19 policy easing will boost demand, while Peru’s sol rose after a partial cabinet reshuffle. The peso gained 1.8% against the dollar, following its best one-day percentage gain in two weeks as prices for the red metal rose, downplaying concerns that a recent spike in coronavirus infections in China it was reducing consumption in the short term. Chile, which is the world’s largest copper producer, is heavily dependent on demand from China, whose zero-COVID policy has disrupted economic activity and pushed the industrial metal off a record high. The Chilean currency is on track for its second straight annual decline, down more than 2%. “China’s announcement of measures to reduce financial costs for companies adds to the idea that 2023 will be a year of great recovery for trade and the overcoming of supply chain problems that have helped inflation in everyone,” said Juan Pérez, Monex’s director of commerce. Latin American stocks rose 0.6%, outperforming broader emerging markets. Increased commodity exposure has helped certain emerging markets more than others, and LatAm stocks will finish the year flat versus a decline of about 23% in the broader MSCI emerging markets index. Mexico’s peso rose 0.7% following firm oil prices. The Colombian peso was dovish on Wednesday and is down 14.6% year to date, below its regional peers. In Peru, President Dina Boluarte named lawyer Alberto Otarola as the new prime minister as part of a cabinet shakeup for her. The sol rose 0.1%, while the Lima stock index remained flat. Boluarte was vice president until she replaced then-president Pedro Castillo earlier this month, who was removed from office and later detained after illegally trying to dissolve Congress. Peru gave Congress the provisional green light on Tuesday to advance general elections to the end of 2023, amid deadly protests over Castillo’s ouster. “The approval is positive in that it responds to mounting public pressures and allows time for potential policy reform changes that could limit the common stalemate between Congress and the executive branches,” Citi strategists wrote in a note. for customers. Brazil’s real rose against a firm dollar. The data showed that the country’s federal tax revenue totaled 172.038 million reais (33.29 billion dollars) in November, up 3.25% in real terms from the same month last year. Sao Paulo shares rose 0.5%, with a 27.2% jump in Brazilian reinsurer IRB Brasil Resseguros SA, which led the gains after posting a monthly gain in October. Argentina’s economic activity expanded 4.5% in October from a year earlier, the country’s official statistics agency said, in line with a recent Reuters poll. In other emerging markets, the Czech crown rose 0.1% against the euro after the country’s National Bank (CNB) held interest rates steady as expected amid signs of peak inflation. Indices and Currencies of Key Latin American Stocks in 1920 GMT: Stocks Index Late Daily % Change MSCI MSCIN Smerging Markets 953.51 0.26 MSCI Latam 2143.37 0.59 Brazil Bovespa 107495.90 0.59 Mexico IPC 50445.26 0.61 CHILE IPSA 5270.29 -0.36 Brazilian Real 5.39 Argentina Merval1.39 Exchange 0.12 Mexican peso 19.6410 0.52 Chilean peso 870.4 1.73 Colombian peso 4762.82 -0.02 Peruvian sol 3.7996 0.08 Argentine peso (interbank) 174.2600 -0.19 Argentine peso (parallel) 321 1.56 edited by Jonathan Oatis and Alex Richardson)

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