Latin American markets started 2018 on Tuesday on a strong footing as solid global economic growth data drove investors to unwind year-end hedges. China's Caixin index of Chinese industry rose to a four-month high of 51.5 in December, confounding forecasts for a decline.
The reading pointed to resilience for the world's largest consumer of commodities even as Beijing cracks down on industrial pollution and engineers a cooling property market. It also bolstered expectations of global economic strength for the first month of the year amid strong readings on manufacturing in the euro zone.
Currencies from Brazil, Mexico, Chile, Colombia strengthened between 0.9 percent and 1.7 percent. Stock indexes were up throughout the region, with Brazil's benchmark Bovespa leading gains as traders unwound bets on a credit downgrade.
Brazilian policymakers met in December with rating agencies to stave off a downgrade after lawmakers delayed a key vote on a plan to streamline the social security system and curb government spending. "The market sought protection from what looked like an imminent sovereign downgrade, but that did not materialize," H.Commcor brokerage trader Cleber Alessie said.
Metal?rgica Gerdau SA stock was the biggest gainer on the benchmark index after Commercial Metals Co agreed to acquire certain US rebar assets owned by the Brazilian steelmaker.
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