EMERGING MARKETS-Peru markets jubilant after cabinet reshuffle

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    * Peru's sol recovers from near record lows, stocks up 5%
    * Mirtha Vasquez appointed as Peru PM
    * Colombian peso cheers Moody's "stable" outlook
    * Brazil's Banco Inter surges 13.5%

 (Recasts, updates prices)
    By Susan Mathew
    Oct 7 (Businesshala) - Peru's sol jumped 1% on Thursday, while
stocks surged 5% and bonds rallied after a more moderate prime
minister was appointed in an official partial cabinet reshuffle
by President Pedro Castillo.
    The sol pulled up from near record lows, while stocks
 hit near four-month highs after Mirtha Vasquez, a
former head of Congress was sworn in as prime minister on
Wednesday, replacing little-known Guido Bellido, whose brash
style had rattled investors. 
    "While still on the left, (Vasquez) should be less extreme
and more conciliatory than outgoing PM Bellido," said
strategists at Citi.
    "We believe this development should help decrease the
possibility of negative tail-risks related to big institutional
changes and will trigger a tactical rally in Soberanos in the
short-term," they said, referring to Peru's local currency
government debt, adding that they are overweight
on the bonds. 
    Peruvian markets had taken a steep road downhill after
Socialist Castillo's surprise lead in first round elections in
April, and subsequent win.  
    Eyes are also on Peru's central bank meeting later in the
day. Credit Suisse expects a 50% basis points hike to 1.5%,
which would be its second straight hike by the same measure this
year.
    Colombia's peso hit over one-month highs after
Moody's improved its outlook on the country to stable from
negative, saying government fiscal measures and post-pandemic
recovery will stabilize its debt.
    Moody's maintained its rating on the country at Baa2, which
comes as a relief after Fitch and S&P both downgraded Colombia's
debt to junk earlier this year. 
    Mexico's currency fell 0.5% to the dollar after data
showed inflation blew past the central bank target in September,
pointing to further rate hikes from the central bank as it
struggles to rein in prices.
    But analysts have criticized the slow pace of hikes by the
bank, with a Businesshala poll forecasting more pain for the peso due
to a largely restrained monetary policy and hardline government
policies perceived as market-unfriendly.
    Concerns over rising inflation in Latam, on the back of a
recent spike in oil prices and supply chain disruptions, also
dampened sentiment. 
    Brazil's real lost 0.3%, staying close to over
five-month lows hit last session. September's inflation reading
due Friday is seen coming in much stronger than the previous
month.
    Among stocks, Brazil's SoftBank-backed digital bank Banco
Inter soared 13.5% after it hired Bank of America,
Bradesco BBI, J.P. Morgan and Itau BBA to manage a listing in
the United States. 
    Chile's benchmark index traded flat after a 2.3%
surge during the session, as some material and utility stocks
fell.     
    Key Latin American stock indexes and currencies:
   Stock indexes           Latest    Daily %
                                     change
 MSCI Emerging Markets      1252.67     2.08
                                     
 MSCI LatAm                 2208.61     0.52
                                     
 Brazil Bovespa           111222.16      0.6
                                     
 Mexico IPC                51027.99      0.1
                                     
 Chile IPSA                 4129.85    -0.06
                                     
 Argentina MerVal          77538.21    0.123
                                     
 Colombia COLCAP            1397.72     1.15
                                     
                                            
      Currencies           Latest    Daily %
                                     change
 Brazil real                 5.5028    -0.32
                                     
 Mexico peso                20.6461    -0.47
                                     
 Chile peso                   812.3     0.07
                                     
 Colombia peso              3771.74     0.37
                                     
 Peru sol                     4.091     1.12
                                     
 Argentina peso             98.9400    -0.02
 (interbank)                         
                                     
 
    
 (Reporting by Ambar Warrick, Federica Urso and Susan Mathew; 
Editing by Mark Heinrich and Andrea Ricci)
  
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