s<u+00c3>o paulo<u+2014>emerging market stocks have been slammed in the wake of donald trump <u+2019>s surprising u.s. presidential victory, but the head of blackrock<u+2019>s latin american equities division says some investors may be running for the exits too soon. while the mercurial mr. trump during the campaign threatened to slap steep tariffs on goods made in china and mexico, he will likely<u+00a0>be more cautious<u+00a0>as president, according to will landers, who manages latin american equities for blackrock, one of the world<u+2019>s largest investment firms. in addition, mr. trump<u+2019>s plan to boost u.s. infrastructure spending<u+00a0>may not deliver the 4% annual gdp growth the controversial businessman promised his supporters<u+2014>but faster growth in the u.s. could lift developing markets on the way, according to mr. landers. <u+201c>it is hard to see the u.s. growing faster, investing more and<u+00a0>this not being good for emerging markets,<u+201d> mr. landers said. "there has been a big change in how the markets interpret what a trump government means.<u+201d> while the dow jones industrial average roared back from its initial postelection plunge to close the week with the biggest one-week advance in years, some latin america equities were still struggling.<u+00a0>brazil<u+00b4>s ibovespa had a volatile<u+00a0>monday, turning slightly up at the end of the session after ending last week down almost 4%. the mexican ipc index was 1.1% higher in early afternoon, after losing more than 7% last week. the prospect of a fiscal boost is cutting demand for haven assets, driving investors to embrace stocks and commodities. but inflation expectations are rising, leading investors to sell regular treasury bonds and seek protection in treasury inflation-protected bonds. mr. landers for now said he plans no major overhaul to his firm<u+2019>s latin american positions, despite widespread uncertainties about what a trump presidency means for the global economy. on the campaign trail, mr. trump repeatedly criticized the north american free trade agreement as a u.s. job killer, and promised to end it as president. but mr. landers said fears of mr. trump unraveling nafta are likely overblown, given the tight integration of the supply chains between the u.s., mexico and canada. overall trade between the three partners topped $1.1 trillion in 2016, while six million u.s. jobs depend on trade with mexico, according to figures cited in a recent report produced by the wharton business school. <u+201c>there are things that can be enhanced in any trade agreement, including nafta, but i don<u+00b4>t believe a rational negotiation will be as harmful as the market had expected,<u+201d> mr. landers said. mexico currently represents about 25% of the $2 billion portfolio blackrock manages in latin america. as for other countries, such as brazil, which represents a bit over 60% of blackrock<u+00b4>s holdings in the region, the impact of a trump presidency tends to be smaller, despite initial seesaw trading, mr. landers said since march, blackrock has been buying shares in brazilian large caps in sectors including mining, energy and banks. even though brazil<u+00b4>s equity benchmark ibovespa has already risen more than 35% year-to-date, mr. landers sees more room for advances as long as the country continues to deal with its own problems, including capping public spending and working on structural reforms, such as the pension system. mr. landers also expects brazil to continue cutting interest rates even if in a slower pace due to the expectation of higher rates in the u.s. during the next presidency. last month, brazil<u+00b4>s central bank cut its selic benchmark interest rate to 14% from 14.25%, where it had been for more than a year, after inflation slowed. as uncertainties diminish regarding the u.s., mr. landers believes investors who focus on brazil will again look at the country for what it is. mr. landers believes that brazil, which has been mired in the worst recession in decades, is likely to resume growth next year. write to luciana magalhaes at luciana.magalhaes@wsj.com
blackrock hasn<u+2019>t changed latin american portfolio after u.s. election  - wsj
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