EMERGING MARKETS-Trade optimism lifts Latam assets, currency controls buoy Argentine peso

Agamoni Ghosh

Argentine peso@ Oct 28 (Reuters) - Latin American assets started the week on a positive footing on Monday buoyed by U.S.-China trade optimism, while Argentina's peso rose after the central bank imposed currency controls following a win by leftists at the center. MSCI's index of Latin American stocks rose 1% boosted by gains in index heavyweight Brazil. U.S. President Donald Trump said on Monday he expected to sign a significant part of an interim trade deal with China ahead of schedule but did not elaborate on the timing.

"Its a classic risk on day with equities shining and emerging assets getting a boost," said Christian Lawrence, Senior FX strategist at Rabobank. Most Latam currencies climbed higher against a tepid dollar led by Brazil's real. Argentina's peso up 0.4% after its central bank imposed currency controls as Peronists swept back into power on Sunday ousting conservative president Mauricio Macri.

The peso however, fell about 1.9% in black market trading, underscoring a loss of trust in the official price. The election result, which was largely on expected lines, shifts Latin America's third-largest economy firmly back toward the left after it was battered by economic crisis. "We knew this was going to be the outcome and there wasn't much of a shock as such," said Lawrence. "Some sort of debt restructuring will be on the cards but don't think anyone has a rock solid view of what's going to happen." Latin American stock indexes and currencies at 14:28 GMT

Stock indexes daily % change


MSCI Emerging Markets 1043.50 0.74MSCI LatAm 2826.02 1.18Brazil Bovespa 107791.01 0.4Mexico IPC 43521.05 0.3Chile IPSA 4957.60 0.28Argentina MerVal 35579.88 3.064Colombia IGBC 13263.81 0.23Currencies daily % change


Brazil real 3.9794 0.74Mexico peso 19.0184 0.18Chile peso 724 0.35Colombia peso 3376.8 0.51Peru sol 3.332 0.09Argentina peso 58.0000 3.43


(Reporting by Agamoni Ghosh Editing by Chizu Nomiyama)