Investors say that the assets of the analysis may not receive a commercial war batch

Written by Rodrigo Campus

New York (Reuters) – Latin America’s shares and bonds can be two unpopular winners as the Trump administration’s trade war was mostly spared in the region, while it caused the market to speed up the Wall Street that sent investors to search for unused assets.

On Friday, the stock index opened on Friday with more than 20 % less than its record on December and “Gauge” in Wall Street, which reached the highest level in eight months. The dollar touched the lowest level in six months this week.

Meanwhile, the superior performance of some corners of the arrows, the emerging currencies, and the elasticity of the bonds, did not pass without anyone noticing.

Latin America has mostly exceeded an additional tariff in US President Donald Trump’s declaration this week that contracts of commercial policy, partly due to the fact that most of the region has a trade deficit with the largest economy in the world.

Despite the huge sale of Friday, the MSCI Latam scale overcomes the S&P 500 with more than 20 degrees Celsius so far in 2025.

Recent returns and rethinking global trade can bring new types of investors to Latin American assets, according to Catherine Exom, head of sovereign research at Gramercy.

“We are clearly retreating, we are in a new model of trade and reorganization of world trade. Assuming that you end with more regional trade blocs, Latin America will be a winner in this regard,” she said.

“It may start increasing the flows,” she added. “Whether direct foreign investment flows (foreign direct investment) or portfolio flows depend on the proposed country, and whether we are talking about the short term or in the medium term.”

Evidence can be found in Brazil and Mexico, the largest economy of the region. The stock markets in both countries increased this year, and their currencies against the dollar.

Economists said that Brazil is in a better position than most countries to deal with the customs tariff, while the favorite treatment in Mexico is expected to continue from an American trade point of view.

The shift towards Latam follows months of fluctuations in Wall Street, as the market viewpoint of American assets was the only destination in review, and investors reorganized the growth expectations in the United States and globally.

“The origins of the emerging market in general excel during this period of fluctuations, and we attribute this to a mixture of improving basics, favorable technical factors, and attractive relative assessments,” said Shamila Khan, head of the fixed income of emerging markets and Asia Pacific at UBS.