MEXICO CITY (AFX) - Stock markets climbed Tuesday in Latin America's two largest economies amid investor optimism over U.S. economic data.
Brazil's benchmark Ibovespa stocks index advanced 1.3 percent to 36,681 points in a volatile session, gaining momentum midday on a decline in international oil prices and a rise on Wall Street. Volume was moderate at 1.9 billion Brazilian reals ($858 million, 679 million euros).
Positive economic data in Brazil also fueled the gain in local shares, with government figures showing federal spending and inflation under control.
With inflation under control, the Brazilian Central Bank has embarked on a monetary easing cycle, reducing the benchmark Selic base interest rate at its past nine meetings. Currently, the Selic base rate stands at 14.75 percent.
The Brazilian real closed weaker against the U.S. dollar Tuesday as foreign capital flowed out of the country and the Brazilian Central Bank soaked up any excess liquidity with a snap auction.
The real closed at 2.202 to the dollar, weaker from Monday's close of 2.193.
Mexico's key IPC index closed 0.7 percent higher, or 143.30 points, at 20,082. Volume was 128.2 million shares worth 3 billion pesos ($275.7 million, 218.2 million euros).
After spending most of the day negative territory, the IPC found support as U.S. markets rallied on lower oil prices and better-than-expected consumer confidence data. The Dow Jones Industrial Index closed 0.5 percent higher, while the Nasdaq Composite Index rose 0.6 percent.
The IPC surged over 400 points Monday on the back of solid second-quarter earnings, despite ongoing presidential election uncertainty.
The peso closed at 10.902 to the dollar, off Monday's close of 10.884.
Peru's stock market ended sharply higher as stronger mineral prices helped lift mining company shares.
The Lima Stock Exchange, the stock market's broad general index, rose 2.07 percent to 8,685.56, while the selective blue chip index increased 2.56 percent, to end at 14,907.40.
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