MEXICO CITY (AFX) - Stocks in Mexico and Brazil -- Latin America's top economies -- closed higher on Tuesday, as concerns about U.S. inflation eased and soaring oil prices retreated.
Mexico's key IPC index closed up 2.4 percent, or 447.69 points, to 18,885.67, as investors focused on the start of the second-quarter earnings season.
'Today was a combination of factors,' said Ixe brokerage head of equity strategy Carlos Ponce. 'We had a major correction of 10 percent in the last nine sessions. We've also had local news with some companies publishing second-quarter results and the central bank raising its daily dollar sales due to strong foreign reserves.'
The Mexican peso enjoyed a late-day rally to close at 10.938 against the dollar -- its strongest level in nine weeks.
Investors are also still watching the country's disputed July 2 presidential election, apparently won by conservative Felipe Calderon. Leftist rival candidate Andres Manuel Lopez Obrador has alleged fraud and demanded a full recount. The Federal Electoral Tribunal has until Aug. 31 to rule on the fraud allegations and until Sept. 6 to declare a president-elect.
In Brazil, the benchmark Ibovespa index advanced 0.8 percent to 35,130 points. Analysts said stocks were buoyed by oil prices falling below US$74 per barrel after trading as high as US$76.55 earlier in the day, as well as the easing U.S. inflation concerns.
The real ended the day slightly stronger at 2.193 per dollar, from 2.203 on Monday.
The Chilean peso rose to 544.5 to the dollar, compared with 546.7 at Monday's close. Traders said the currency tracked the real's gains.
Chile's benchmark Ipsa index closed higher following nine straight declines, up 1.2 percent to 2,064.87 points.
Peru's stock market fell as mining companies again lost ground due to weaker metals prices.
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