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LatAm FX up 1%, stocks rise 2%

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Bradesco expects slower credit portfolio growth in 2026

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Brazil ministry expects 2.3% economic growth this year

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Colombian stocks set for biggest weekly drop since March

(Updates to mid-session trading)

By Purvi Agarwal and Ragini Mathur

Feb 6 (Reuters) - Most Latin American currencies

strengthened against the dollar on Friday, while stocks

recovered from two sessions of declines, positioning the broader

indexes to end ‌a turbulent week in positive territory.

MSCI's index tracking stocks in Latin America

and the currencies' equivalent

were on track for marginal weekly gains, which would mark ​their

seventh weekly increase in a row.

This resilience comes despite a week of sharp volatility, as

wild swings in ‍precious metal prices and a tech sector selloff

rippled through Asian emerging markets and ⁠resource-dependent

economies across Latin America and ⁠South Africa.

Still, as investors moved out of the U.S. in a bid to

diversify their holdings, emerging markets excluding China saw

$12 billion in ‌inflows, according to data from BofA Global

Research.

"LatAm markets were under ​pressure along with other risk

assets, but they still performed relatively well, reflecting the

fact that the central banks are largely on track and that the

fiscal positions generally are on course," ⁠said Rachel Ziemba,

founder of Ziemba Insights.

On the day, ‍heavyweight stocks in ​Brazil were up

slightly, with gains countered by a 2.4% decline in Bradesco

after the lender said it expects slower growth in its

credit portfolio this year.

Brazil's real appreciated 1%, on track for its ‍sixth

week of gains. The country's Finance Ministry projected 2.3%

growth for the economy in 2026, matching its expected pace for

2025, while inflation was forecast to ease but remain above

target.

The dollar index weakened 0.3% on the day, lifting

Latin American currencies, a day after data showed U.S. jobless

claims increased last week and job openings fell to an

over-five-year low in December.

"Supporting markets may be the view that the Federal Reserve

is ready to run to the ​rescue again... ‍Helping that adjustment

to Fed pricing was some surprisingly soft U.S. labour market

data yesterday," said Chris Turner, global head of markets

research at ING.

Stocks in Mexico advanced 2.3% and were set for their

biggest ​weekly gain in nine months.

Colombian equities gained 1.6%, but they were on

track for their biggest weekly drop in over ten months.

The currencies in these oil exporting counties

were also up as crude prices climbed on the day.

Chile's peso was trading 1.3% higher but local stocks

fell 0.3%. Data showed Chile's 12-month inflation fell

in January to its lowest level in more than five years.

Argentina will give preferential market access to U.S. goods

exports as part of a new trade and investment agreement that

prohibits ​barriers to digital trade and enhances cooperation on

economic and national security issues, the U.S. Trade

Representative's office said on Thursday.

Argentina's peso appreciated 0.8% against the

dollar.

Key Latin American stock indexes and currencies:

Stock indexes Latest Daily % change

MSCI Emerging Markets 1508.38 0.06

MSCI LatAm 3167.75 2.02

Brazil Bovespa 182776.12 0.36

Mexico IPC 70436.72 2.29

Chile IPSA 11210.78 -0.36

Argentina MerVal 2981063.3 1.64

9

Colombia COLCAP 2357.14 1.58

Currencies Latest Daily % change

Brazil real 5.2174 1.04

Mexico peso 17.257 1.4

Chile peso 855.23 1.34

Colombia ‍peso 3674.05 0.34

Peru sol 3.3583 0.22

Argentina peso (interbank) 1,431.0 0.83

Argentina peso (parallel) 1,415.0 1.74