Most Latin American stocks rose on Tuesday, led by Brazilian equities, as investors weighed renewed fighting in the Middle East, which kept oil prices and global bond yields elevated, alongside a fresh batch of regional economic data.
The MSCI Latin America equities index gained 1.4%, while São Paulo's Bovespa climbed 1.9%, putting it on track for a 10th straight session of gains, its longest winning streak since November 2025.
Brazil's oil production rose 13.6% year-on-year in July to a record 4.5 million barrels per day. State-run oil company Petrobras rose 3%, providing the biggest boost to the benchmark index.
Brazil's economic growth slowed in the second quarter as elevated borrowing costs continued to weigh on activity, though the expansion was slightly stronger than expected thanks to a robust performance from the farm sector, data showed.
"Economic activity slowed in Q2 after a strong start to the year, but the headline was more resilient than the underlying domestic economy," said Andres Abadia, chief LatAm economist at Pantheon Macroeconomics.
"The data therefore reinforce our view that restrictive monetary policy is gradually gaining traction, rather than pointing to an abrupt downturn."
The Brazilian real gained 0.7%.
Oil prices rose after U.S. President Donald Trump threatened further strikes against Iran after the first direct exchange of attacks between the two countries since late July, supporting Latin American oil exporters.
Broader sentiment, however, remained cautious as a global bond selloff deepened, with investors assessing the economic impact of the conflict and the risk that higher borrowing costs could fuel inflation pressures.
Higher global bond yields are typically a headwind for emerging market assets because they increase the appeal of developed-market debt and reduce demand for riskier investments.
A stronger dollar left regional currencies mixed overall, although MSCI's Latam currency gauge rose 0.5%.
EEM•
