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Latin America stocks rise on higher oil prices

Latin America stocks rise on higher oil prices

Latin American stocks rose slightly Monday as prices for oil and other locally produced commodities climbed.
Brazil's benchmark Ibovespa index rose 0.5 percent to 37,060. Shares for state-run oil company Petroleo Brasileiro SA gained 2.4 percent to 22.52 reals amid a jump in world crude prices. Brazil's currency gained slightly to trade at 2.4 reals to the U.S. dollar.
In Mexico, the benchmark IPC index dipped 0.6 percent to 22,392 as the peso weakened to 13.6 to the U.S. dollar. Mexico's Central Bank sought to auction off $400 million in currency reserves to boost the sagging currency, but only received bidders for $46 million at a price of 13.62 pesos to the dollar.
Argentina's Merval index meanwhile gained 1.7 percent to close at 1,076, while Chile's IPSA rose 1 percent to 2,373 and Colombia's IGBC slid 0.5 percent to 7,523.
The world financial crisis has battered Latin American stocks as foreign investors dump local assets to cover losses at home and sales at the region's biggest commodity exporters sink with falling prices for oil, copper, soy and other products. Brazil's Ibovespa has lost 48 percent of its value since June 2, and Mexico's IPC has lost 29 percent.
Still, copper, silver and sugar prices rose on Monday, and oil prices surged 6.5 percent to $40.16 a barrel as Israel's attack on Hamas targets in the Gaza Strip raised concern that oil production might be disrupted in the Middle East.
Many investors, who've worried that plunging oil prices signal a long world recession, welcomed the gain. Oil prices have dropped more than 70 percent since topping $147 a barrel on July 11 as the slowing world economy curbed demand.


Updated : 2021-08-02 05:18 GMT+08:00