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LatAm stocks jump 2.3%, FX up 0.7%

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Brazil's easing inflation paves way for early 2026 rate

cut

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Mexico's September industrial production falls

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Argentina's annual inflation set to fall - Reuters Poll

(Updates with afternoon trading)

By Nikhil Sharma and Sukriti Gupta

Nov 11 (Reuters) - Latin American assets jumped on

Tuesday as investors bet on an end to a prolonged U.S.

government shutdown, while firmer commodity prices boosted the

resource-heavy regional markets.

MSCI's gauge for Latin American equities

jumped 2.3% to reach its highest since April 2022.

"You're mostly seeing an environment of U.S. dollar

depreciation today, which is probably a product of the federal

government getting ready to reopen and also some U.S. data

that's kind of consistent with the Federal Reserve cutting

interest rates, at least in December," said Brendan McKenna,

international economist at Wells Fargo.

"(this is) placing depreciation on the U.S. dollar, but also

supporting Latin America FX over the course of the day."

The U.S. Senate on Monday approved a compromise to restore

federal funding and extend it through January 30, potentially

ending the longest government shutdown in U.S. history.

Concerns about elevated technology valuations also

resurfaced in the U.S., while a weekly update of ADP's

preliminary payroll figures showed that private employers shed

an average of 11,250 jobs a week for the four weeks ended

October 25, highlighting fears of a deteriorating labor market.

MSCI's index for Latin American currencies

hit an all-time high, up 0.7%, and was set to extend its daily

winning run to five sessions, propped up by a weak U.S. dollar.

In Brazil, the real rose 0.4%, supported by higher

crude prices after new U.S. sanctions on Russian oil. Oil

exports account for a sizable share of Brazil's export revenue.

Brazilian inflation slowed more than expected to 4.68% in

October, building a strong argument for policy easing next year.

The current inflation rate is slightly above the central

bank's 3% target. The bank had kept the benchmark Selic rate

steady last week near a 20-year high and signaled further pauses

to guide inflation back to target.

Sao Paulo's main stock index hit a record high, up

1.5%, and was poised to extend its winning streak to 15

sessions, a run last seen in May 1994. Heavyweight oil firm

Petrobras supported the index by rising 2.5%.

The index is up more than 31% in 2025, on pace for its best

year since 2019, highlighting investors' appetite for developing

markets that offer cheaper valuations and higher yields.

Colombia's benchmark index has gained more than

50% in 2025, eyeing its best year since 2009 after periods of

underperformance. For the day, the index was up 0.4%.

Fresh data highlighted growing price pressures after annual

inflation in the South American economy rose more than expected

to 5.51%, well above the central bank's 3% target. The local

peso added 0.5%.

In Mexico, the local equity index advanced 1.9% and

the peso currency extended gains for the third straight

session, up 0.4%, helped by energy prices.

But the latest data underscored growth concerns as factory

activity in Latin America's second-largest economy fell more

than expected in September from a year earlier, marking a sixth

straight month of contraction.

The peso of the world's biggest copper producer Chile

rose 0.4%, tracking a jump in red metal prices. The Santiago

stock index advanced 0.5%.

The country is braced for a presidential election later this

weekend.

Stocks in Argentina jumped 1.1%, while the local

peso gained 1.1%. Argentina's annual inflation rate

is set to hit a six-year low, according to a Reuters poll ahead

of official data due on Wednesday.

Key Latin American stock indexes and currencies:

Equities Latest Daily %

change

MSCI Emerging Markets 1403.85 0.26

MSCI LatAm 2720.94 2.29

Brazil Bovespa 157536.1 1.47

Mexico IPC 64285.44 1.89

Chile IPSA 9710.83 0.52

Argentina Merval 2984321.28 1.09

Colombia COLCAP 2080.49 0.41

Currencies Latest Daily %

change

Brazil real 5.2709 0.37

Mexico peso 18.3115 0.35

Chile peso 933.35 0.43

Colombia peso 3733.36 0.46

Peru sol 3.365 0.04

Argentina peso (interbank) 1405 1.1

Argentina peso (parallel) 1420 -8.80