MercoPress. South Atlantic News Agency

Best March performance in 15 years for Latam financial markets

Latin American financial markets recorded their best monthly performance during March in more than 15 years, as signs of stabilization in the global financial system encouraged investors to take on risk.

The MSCI stock index for emerging markets MSCIEF soared 14.11% in March, its best result since December 1993 with the Latin American portion of the indicator jumping 9.94%, its best performance since October 2007.

“We still have a lot of uncertainties ahead of us, but the recovery in commodities puts a floor in the market,” said Andre Spolidoro, a partner with Nobel Asset Management in Sao Paulo.

On March 31st the MSCI Latin America index rose 1.86% as metal and oil prices rose, supporting the outlook for the commodity-exporting region.

Gains of more than 1% in key U.S. stock indexes also helped. Wall Street was supported by optimism about the financial sector after British bank Barclays declined top take part in a government asset-protection plan.

Peru's benchmark stock index led regional gains as it ended 3.94% higher, supported by shares of mining companies. Brazil's Bovespa stock index followed suit with gains of 0.67%, while Mexico's IPC index rose 0.49%.

But Chile's blue-chip IPSA index closed 0.6% lower after a government report showed the country's industrial production sank 11.5% in February, more than expected by economists and the biggest drop since the data started being compiled in 1990.

Output of copper, Chile's main export, fell nearly 10% in February. Joblessness rose to 8.5% in the December-to-February period, jumping from 8% in the November-to-January period.