Latin American Stocks Soar on Weakening Dollar and Easing Inflation Concerns

Latin American equities rose to multi-month highs on Thursday as concerns over inflation and the US-Iran conflict eased, causing global bond yields to lose momentum. The Latin America 40 index (LAPA) gained 0.4% in response to the weakening of the US dollar.

The recent escalation of the US-Iran war and a rise in oil prices above $95 per barrel had led to a surge in global bond yields earlier this week, but investors now seem more confident in riskier emerging-market assets.

Brazil's Bovespa index, however, ended an 11-day winning streak and traded little changed, as investors monitored the country's presidential election. President Luiz Inacio Lula da Silva is running a cautious campaign to defend his narrow lead over right-wing Senator Flavio Bolsonaro.

In other markets, the Argentine peso weakened after reaching a three-week high in the previous session. The Chilean peso fell 0.4%, while the Colombian peso added 0.7%.