EMERGING MARKETS-LatAm equities advance as investors assess regional developments

By Twesha Dikshit

Dec 2 (Reuters) - Latin American equities advanced on Tuesday after starting the week on a cautious note, with Brazil's benchmark equity index touching a fresh peak while investors monitored regional developments and assessed data.

The MSCI index tracking regional stocks .MILA00000PUS rose 0.7%, while a similar gauge for currencies .MILA00000CUS was little changed.

Both indexes marked their fourth consecutive month of gains in November, with LatAm assets outperforming some of their global peers this year, boosted by a weaker dollar and attractive valuations.

"Emerging markets and LatAm, in particular Andean countries, have been ahead of developed markets in lowering rates, and that has obviously helped the valuation in equities," said Alejandro Cuadrado, EM/Latin America strategist and global head of FX at BBVA.

"We have had a lot of softening of the dollar and flatter expectations for most central banks, which should keep volatility relatively low. That's still fostering a good environment for continuing carry trades."

BOVESPA TOPS 160,000

Brazil's Bovespa .BVSP Index surpassed 160,000 points for the first time and was last up 0.9%. With GDP data expected on Thursday, economic growth was expected to have expanded modestly in the third quarter, according to most economists polled by Reuters.

The real BRL= firmed 0.3% against the greenback with data showing industrial production rose 0.1% in October from September, according to government statistics agency IBGE.

Argentina's S&P Merval index .MERV gained 0.6% for a sixth consecutive day of gains while the peso ARS= was little changed.

The Chilean peso CLP= strengthened 0.4% against the dollar while equities .SPIPSA ticked up as investors awaited the Andean nation's presidential runoff in mid-December.

Far-right candidate Jose Antonio Kast has emerged as a popular choice among investors who hope a conservative government will embrace market-friendly initiatives.

Colombian stocks .COLCAP gained 0.3% and have outperformed most peers, up over 50% for the year.

U.S. President Donald Trump pardoned former Honduran President Juan Orlando Hernandez, who was released from a U.S. prison where he was serving a 45-year sentence on drug trafficking and firearms charges.

The release came days after a presidential election in the country, in which Trump backed the conservative National Party's candidate over the liberal candidate.

South African equities .JTOPI dropped 1.1% and the rand ZAR= edged down 0.3%. Economic growth in Africa's biggest economy slowed in the third quarter of 2025 as expected.

Polish equities .WIG20 were down 1.3%, while Czech stocks .PX rose 0.8% and Israel's equity index .TA125 advanced 1.5%.