Mexico, Brazil, Colombia and Chile move with local catalysts
MSCI's index tracking Latin American equities .MILA00000PUS rose 0.5%, while the currency equivalent .MILA00000CUS edged 0.3% higher.
Investors in the region awaited a central bank decision from Mexico later in the day, with policymakers widely expected to keep interest rates unchanged. Analysts remain divided on the timing and scale of the next move amid uncertainty over whether slowing inflation will persist.
The Mexican peso MXN= was muted, while equities .MXX in the region's second-largest economy rose 1.1%. Analysts at ING expect the peso to remain stable in the absence of any further Fed rate hikes, though they warned that any trouble in Mexican trade negotiations with the U.S. could pressure the currency.
In Brazil, Finance Minister Dario Durigan said bringing interest rates down remains a "big challenge," a day after the central bank delivered a fourth straight 25-basis-point rate cut and left the door open for more cuts.
The Brazilian real BRL= strengthened 0.5%, while the country's stocks .BVSP declined 0.4%.
Investors are also keeping close watch on Brazil's presidential election campaign ahead of the October vote.
"Brazil's high carry remains attractive, but investors will have to be attentive to political news in the run-up to the presidential elections in early October," said Chris Turner, global head of markets at ING, referring to the high interest rate on real-denominated assets.
Mining and oil company executives in Colombia said the industry is ready to invest billions of dollars in new exploration, but expect quick action from the incoming government to remove regulatory obstacles.
Colombian equities .COLCAP rose 1.3%, led by a 4% advance in energy company Ecopetrol ECOPETROL.CN, while Colombia's currency COP= edged 0.4% higher.
Latin American assets rise as commodities and Middle East talks lift sentiment
Most Latin American equities and currencies gained on Thursday, as growing optimism over the resumption of energy supplies from the Middle East and firmer commodity prices lifted sentiment.
Iran and Oman reached an understanding on Wednesday on coordinates for a shipping route through the Strait of Hormuz, though talks were ongoing.
Oil prices rose 1.8% as traders remained cautious about the talks' outcome and whether they will lead to the restoration of crude supplies through the waterway.
The U.S. dollar index =USD gained 0.2% ahead of jobs data due on Friday, as markets shift focus to economic data in the absence of any forward guidance from the Federal Reserve.
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