MercoPress. South Atlantic News Agency

Positive contagion lifts Latam to one day record-gains

Latinamerican equities staged on Monday a powerful rebound from last week's crash, with Brazil's Bovespa soaring 14% and Mexico's IPA 11.1%, its highest one day gain this year and since 1998.

This way both Brazil and Mexico cut the seven day streak of relentless fall. The Sao Paulo market index experienced its largest advance since January 15, 1999 and again was over the benchmark 40.000 points, (40.654) recovering 5.220 points over last Friday. The benchmark index was buoyed by bank shares, which jumped following central bank measures to further ease reserve requirements on deposits. In Chile the Santiago stock exchange also experienced a historic gain with the IPSA advancing 12.5%. Last week the Chilean market lost 20% as contagion from the financial crisis expanded globally. The Peruvian market jumped 13.67% its highest since August 1990 reaching 8.666 points. The positive reaction of Latam markets was also reflected in the currencies which advanced against the US dollar. Brazil's Real recovered 7.3% and ended at 2.15 to the US dollar. The Chilean peso closed at 616, having finished last week over 640 to the US dollar. The Mexican peso and the Peruvian sol also experienced similar recoveries.