(Updates prices)
By Bruno Federowski
BRASILIA, Jan 19 (Reuters) - Brazilian stocks hovered near all-time highs on Friday as optimism over the country's economic prospects sustained demand for local assets, while hopes of a tie-up with Boeing Co boosted shares of Embraer SA .
The benchmark Bovespa stock index rose 0.32 percent, hitting an intraday record of 81,429. The bourse was supported by blue chips such as lenders Banco Bradesco SA and Ita?? Unibanco Holding SA .
Emerging markets kicked off the year with a rally as several reports showing strong economic growth worldwide fostered appetite for high-yielding assets. Brazil's stock market outperformed, supported by expectations that policymakers will plug a budget gap and rein in runaway public debt.
Embraer shares also advanced on Friday, as traders bet the planemaker could strike a deal with Boeing to help face down a partnership between rivals Bombardier Inc and Airbus SE .
Reuters reported late on Thursday that Boeing was working to overcome the Brazilian military's objections to its proposed tie-up with Embraer with alternatives that would preserve the government's strategic veto rights and ensure safeguards for its defense programs. Argentina'sMerval index fell 1.3 percent after hitting an all-time high on Thursday. Argentina's stock market is up nearly 12 percent so far this year, benefiting from foreign capital inflows, as high liquidity abroad has combined with a favorable political outlook for Argentina.
Latin American currencies were little changed as heightened fears of a U.S. government shutdown unnerved investors.
Legislation to stave off an imminent shutdown hit obstacles in the U.S. Senate, despite the passage of a month-long funding bill by the House of Representatives.
Without the injection of new money, no matter how temporary, scores of federal agencies will be forced to close at midnight on Friday, when existing funds expire. Key Latin American stock indexes and currencies at 2300 GMT:
Stock indexes daily % YTD %
Latest changechangeMSCI Emerging Markets 1233.010.455.96 MSCI LatAm3078.370.388.43 Brazil Bovespa 81219.500.326.31 Mexico IPC 49696.37 -0.430.69 Chile IPSA5856.270.295.24 Chile IGPA 29402.170.295.08 Argentina MerVal 33600.73 -1.32 11.76 Colombia IGBC11867.45 -0.114.37 Venezuela IBC 2338.651.43 85.15 Currenciesdaily % YTD %
changechange
LatestBrazil real 3.19460.193.72
Mexico peso 18.6095 -0.065.85 Chile peso 608.44 -0.581.02
Colombia peso 2849.25 -0.204.66Peru sol 3.216 -0.060.65
Argentina peso18.9900 -0.61 -2.05(interbank) Argentina peso19.640.00 -2.09(parallel) (Reporting by Bruno Federowski; Editing by James Dalgleish)
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