Mexican and Brazilian equities held to gains Tuesday as the U.S.' top central banker was grilled about the government's extended bailout of troubled insurer American International Group Inc., a move that contributed to a global sell-off a day ago that left regional markets battered.
The Bovespa, Brazil's benchmark equity index, rose 0.6% to 36,468, with steel, finance, and transportation issues pacing gains. Monday's sell-off pushed the index into negative territory on a year-to-date basis.
The index tracking the largest stock market in Latin America is now down 2.9%, but is still up compared with the benchmark S&P 500 Index .
Mexico's IPC rose 1% to 17,093.25, but remains visiting lows last seen in October.
Argentina's Merval, however, was stuck in the red on Tuesday, declining 1.5% to 922.63 The benchmark finished below the 900-points level a day ago for the first time since early December.
Chile's IPSA reversed course to end down 0.3% to 2,401.61.
Investors watched U.S. Federal Reserve Chairman Ben Bernanke answer questions from U.S. senators about the government's decision to invest another $30 billion in AIG, which, on Monday, unveiled a $61 billion loss for the fourth quarter, the largest loss ever recorded by any corporation. AIG had been given a loan package of $150 billion in November.
Bernanke, who had been called to testify about the country's fiscal position, said without the new funds, AIG would likely fail, which would severely hurt the banking and insurance systems.
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