Emerging Markets-LatAm stocks, FX mixed as Treasury yields resume climb

Elsewhere, Mexico's peso MXN= slipped 0.1%, while the country's main stock index .MXX rose 0.4%. Mexico's economy likely grew 2.7% in July from a year earlier, according to a preliminary estimate released by national statistics agency INEGI. Key Latin American stock indexes and currencies at 14:32: | | | | | --- | --- | --- | | Stock indexes | Latest | Daily % change | | MSCI Emerging Markets .MSCIEF | 1700.17 | 1.91 | | MSCI LatAm .MILA00000PUS | 2958.14 | -0.19 | | Brazil Bovespa .BVSP | 168363.1 | 0.32 | | Mexico IPC .MXX | 64240.32 | 0.38 | | Chile IPSA .SPIPSA | 11184.55 | -0.51 | | Argentina MerVal .MERV | 2899327.73 | 0.86 | | Colombia COLCAP .COLCAP | 2438.96 | -0.61 | | | | | | Currencies | Latest | Daily % change | | Brazil real BRL= | 5.1972 | -0.43 | | Mexico peso MXN= | 16.958 | -0.11 | | Chile peso CLP= | 924.24 | -0.38 | | Colombia peso COP= | 3061.28 | -0.39 | | Peru sol PEN= | 3.3539 | 0.38 | | Argentina peso (interbank) ARS=RASL | 1,498.0 | -0.03 | | Argentina peso (parallel) ARSB= | 1,525.0 | 2.24 | Most Latin American currencies and stocks were mixed on Thursday as U.S. Treasury yields resumed their climb, prompting investors to question whether U.S. Treasury support measures would provide lasting relief. The MSCI Latin America equities index .MILA00000PUS fell 0.2% and the regional currency gauge .MILA00000CUS was also off 0.2%. Both indexes had recorded their strongest daily gains of the month on Wednesday. The yield on the 30-year U.S. Treasury bond US30YT=RR rose to 5.2298%, reversing some of the relief seen a day earlier after the U.S. Treasury pledged to buy back more longer-dated debt. "What the Treasury Department did is kind of a bailout and what they're buying back is these long-dated Treasuries that do not really have much of a market," said Juan Perez, director of trading at Monex. Higher U.S. yields typically weigh on emerging markets by raising borrowing costs, drawing capital toward dollar-denominated assets and putting pressure on local currencies. The dollar =USD was little changed, hovering near a three-month low, though it recovered some ground from the steep losses posted in the previous session as the rebound in Treasury yields offered some support. In Brazil, the real BRL= weakened 0.4%, while the benchmark Bovespa stock index .BVSP rose 0.3%. Brazilian Finance Minister Dario Durigan said that, if President Luiz Inacio Lula da Silva's administration secures another term in the October election, the government would maintain its fiscal framework through spending controls and efforts to boost revenue. His comments came as Brazilian markets remained under pressure following the release of minutes from the central bank's meeting earlier this month, which indicated that policymakers favored a more hawkish stance ahead of the presidential election. Recent polls show Lula leading his right-wing opponent, Flávio Bolsonaro. "If there is a Lula continuation, then you're no longer counting on the entire hemisphere, or almost all of South America, aligning with the U.S.," Perez said. Some analysts also have said a Lula victory could pave the way for more expansionary fiscal policy, potentially adding to inflationary pressures.

Emerging Markets-LatAm stocks, FX mixed as Treasury yields resume climb

Mexico economy data and market moves

LatAm markets mixed as Treasury yields rise

Brazil markets watch fiscal policy and election signals

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Stock indexes	Latest	Daily % change
MSCI Emerging Markets .MSCIEF	1700.17	1.91
MSCI LatAm .MILA00000PUS	2958.14	-0.19
Brazil Bovespa .BVSP	168363.1	0.32
Mexico IPC .MXX	64240.32