EMERGING MARKETS-Latam stocks, currencies climb on trade hopes

Oct 9 (Reuters) - Latin American stocks and currencies gained on Wednesday, as reports that China may be open to a partial trade deal with the United States encouraged hopes of a de-escalation in their trade war that has roiled markets for over a year. Brazil's main Bovespa index gained 0.6%, with banks and energy leading the rise. Shares in Gol Linhas Aereas jumped 4% to the top of the index after the airline company released its outlook for third quarter. Stocks across the globe took a hit earlier due to concerns over progress in the U.S.-China trade talks, but a Bloomberg report said Beijing was open to a partial trade deal with the U.S. despite the recent U.S. blacklisting of Chinese technology firms. The Financial Times reported that China was offering to increase annual purchases of U.S. agricultural products as part of efforts to secure an interim trade agreement with Washington.

That dented the U.S. dollar, which had already been under pressure following Federal Reserve Chair Jerome Powell's comments about further U.S. interest rate cuts and resumption of bond buying. The weakness in the dollar helped the Mexican peso and the Brazilian real gain 0.4% and 0.1%, respectively. The real edged up even as data showed consumer price inflation fell to its lowest in more than a year in September and undershot the central bank's target, adding to the case for another rate cut from the central bank. Mexico's currency was up 0.4%, as data showed consumer prices cooled for a fifth month in September, but the numbers were broadly in line with expectations. Ecuador's bonds slumped to multi-month lows as protesters began a national strike after President Lenin Moreno refused to step down or overturn anti-austerity measures that have triggered the worst unrest in a decade. Violent demonstrations erupted in the Andean nation a week ago when Moreno cut fuel subsidies as part of a package of measures in line with a $4.2 billion International Monetary Fund (IMF) loan.

Key Latin American stock indexes and currencies at 1419GMT:

Stock indexes Latest Daily %


MSCI Emerging Markets 992.60 -0.14MSCI LatAm 2630.86 0.35Brazil Bovespa 100561.47 0.58Mexico IPC 42635.57 0.24Chile IPSA 5038.20 -0.06Argentina MerVal - -Colombia IGBC 12896.23 -0.06Currencies Latest Daily %


Brazil real 4.0880 0.18Mexico peso 19.5425 0.43Chile peso 723.85 0.13Colombia peso 3444.25 0.11Peru sol 3.379 0.09Argentina peso (interbank) 57.9500 -0.17

(Reporting by Sruthi Shankar in Bengaluru; Editing by Bernadette Baum)