EMERGING MARKETS – Brazil is promoting electoral hopes. Argentine peso jumps


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                By Bruno Federowski
BRASILIA, September 21 (Reuters) - Brazilian markets have progressed
Friday after a poll of opinion suggested the rightwing legislator Jair
Bolsonaro would do well against his main rival in a likely
second round vote in this year 's presidential election.
Bolsonaro hired a banker trained by the University of Chicago
Paulo Guedes, his main economic adviser, encourages investors to
bet he would act strongly to reduce government spending and
curb the growth of the public debt.
Apparent contradictions between Guedes and Bolsonaro have
raised questions about the legislator's commitment to
market-friendly reforms. Nevertheless, investors still prefer
him on the leftist Fernando Haddad, who seems most likely to reach
the second round.
A telephone survey published by XP Investimentos showed
Bolsonaro remains in the lead in the first round but technically
tied with Haddad in the second round. Rejection of Bolsonaro
rate, however, was smaller than that of Haddad, being run
unlike other recent polls that have shown the opposite.
The Brazilian stock index jumped 2%,
the main gains in the region as blue-chips such as Vale SA
and Petróleo Brasileiro SA have increased.
Brazilian real firmed up 0.9% at 4.04
dollar - a month's high - a day when the currencies of Mexico
, Colombia and Chile were either flat or
slightly higher.
"The XP survey makes investors happy, but there is
little room for the currency to appreciate after 4.05 ", Miriam
Tavares, head of currency trading at AGK, said.
The Argentine peso was the biggest winner
Latin-American currency markets, up nearly 2 percent
the central bank has refrained from intervening.
The peso was pushed higher this week by optimism that
the government will sign a revised emergency funding agreement with
the International Monetary Fund, which will include
tax measures.

Main Latin American stock market indices and currencies at 17:20 GMT:
Daily Market Index% YTD%
change the change
Latest
MSCI Emerging Markets 1036.93 0.57 -10.49
MSCI LatAm 2509.66 0.32 -11.26
Bovespa Brazil 79713.55 2.05 4.33
Mexico IPC 49696.75 0.38 0.69
Chile IPSA 5421.35 -0.46 -0.46
Argentina MerVal 34217.88 -0.86 13.81
Colombia CIGB 12265.06 0.48 7.87

Currencies daily% YTD%
change the change
Latest
Brazilian Real 4.0350 0.89 -17.89
Mexican peso 18.8126 0.03 4.71

Chilean Peso 664.1 0.47 -7.45
Colombian peso 3000.35 0.15 -0.61
Peru soil 3.289 0.21 -1.58
Argentine Peso (interbank) 37,5500 1,86 -50,47

Argentine Peso (Parallel) 38.25 1.31 -49.73



(Reportage by Bruno Federowski;
Additional report by Claudia Violante in São Paulo
Edited by Alistair Bell)
  
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