SAO PAULO: Latin American markets on Friday were mostly unfazed by this week's global stock rout, supported by expectations of strong global growth.
Stocks and currencies in the region still headed for weekly losses, though smaller than their developed-market peers.
Most saw little trade on Friday ahead of Brazil's Carnival holidays, which will keep the region's largest markets closed on Monday and Tuesday.
"We may not see many gains today as recent volatility should prompt defensive positions against global USD swings," analysts at Continuum Economics wrote in a client note.
The Brazilian real slipped 0.2 percent, capping a 3.5 percent decline this week, while the benchmark Bovespa stock index was nearly flat.
The limited moves came despite a 4-percent decline in Chinese stocks, which fostered risk-aversion in wider markets. Rising US stocks, however, partially offset those concerns.
Global markets have suffered in recent weeks as rising US wages stoked fears that US borrowing costs may rise faster than expected, draining capital away from other economies.
A Reuters poll, however, showed that Latin American currencies are likely to emerge unscathed from the recent rout, supported by a stronger growth outlook at home and abroad.
Comments
Comments are closed for this article.