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Mexico lures investors away from Brazil

Friday, May 25, 2012

Mexican stocks are drawing investors away from Brazil as Latin America's biggest economy loses steam and Mexico's close ties to the United States render it a safer bet in unsettled times.

Although the market capitalization of Brazil's bourse is three times that of Mexico's, the Mexican stock market's standing with fund investors has been on a slow and steady rise since the end of last year.

Slow and steady economic growth, at an annual rate of 3 to 4 percent, is also earning Mexico a second look from those with money to invest in the region despite renewed fears about the future of the euro zone and the chance of a Lehman-style global crisis.

Source: Reuters