Latam shares, FX gain as surging oil supports regional exporters

Petrobras climbed 4%, providing the biggest lift to the Brazilian benchmark. Data showed the country's oil output rose 13.6% year-on-year in July to a record 4.5 million barrels per day.

The surging crude prices supported oil-exporting economies in the region, which have also benefited as producers in the Americas boost exports to Asian buyers seeking alternatives to Gulf crude.

Brazil's economy slowed in the second quarter as high borrowing costs weighed on activity, though growth slightly beat expectations on a strong farm sector.

"The data therefore reinforce our view that restrictive monetary policy is gradually gaining traction, rather than pointing to an abrupt downturn," said Andres Abadia, chief Latin America economist at Pantheon Macroeconomics.