RIO DE JANEIRO: Latin American stocks rose on Thursday on bets the US Federal Reserve may take longer to raise rates while the European Central Bank prepares to launch a massive bond-buying program.
Prospects that global liquidity may remain ample throughout the year encouraged investors to buy riskier, higher-yielding emerging market assets despite volatility in the price of oil and other commodities.
Some investors bet the Fed may avoid raising rates this year after data on the US mid-Atlantic region from the Philadelphia Federal Reserve showed business activity weakened more-than-expected in January.
"Prospects for more European (monetary) stimulus and for interest rates to remain low for longer in the United States are favorable to the Brazilian market," said Alfredo Barbutti, chief economist with BGC brokerage in Brazil.
Brazil's benchmark Bovespa stock index climbed 1.4 percent, boosted by a 9 percent jump in shares of state-run oil company Petroleo Brasileiro SA.
Petrobras, as the Brazilian oil firm is known, said after markets closed on Wednesday that it intends to release its third-quarter earnings on Jan. 27. The results have been delayed since November as PricewaterhouseCoopers refused to certify Petrobras' accounts after a corruption scandal raised questions about the value of its assets.
Other Latin American bourses posted more modest gains, with Mexico's IPC stock index gaining 0.3 percent after data showed domestic consumer spending rose 1.1 percent in October from September, suggesting the economy is gaining traction.
"Mexican economic growth has accelerated materially from its subdued 2013-2014 pace, and should register a very solid year in 2015," said Bill Adamns, senior international economist for PNC Financial Services Group.
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