September 18, 2008 / 2:59 PM / 12 years ago

Argentine stocks, bonds rise on global upswing

BUENOS AIRES, Sept 18 (Reuters) - Argentine stocks and bonds traded higher early on Thursday, mirroring a recovery in jittery global markets prompted by central banks’ move to pump billions of dollars into skittish financial markets.

The MerVal .MERV index of leading stocks traded up 0.9 percent at 1,505.55 after sinking to its lowest since later 2005 on Wednesday.

Leading central banks, including the U.S. Federal Reserve and the European Central Bank, offered on Thursday to boost liquidity in worldwide markets in a bid to ease a global credit crunch by freeing up frozen interbank lending.

Argentina’s sovereign debt traded up an average 2.2 percent in over-the-counter trade in Buenos Aires, after sliding 3.2 percent a day earlier.

The dollar-denominated Par bond ARPARD=RASL stood out among the gainers with a 2.6 percent gain in early trades.

Investors had a terrifying day around the world on Wednesday as growing fear of financial risk sparked a global rout in stocks and riskier emerging market assets.

Meanwhile, the Argentine peso currency continued to weaken due to strong demand for safe-haven greenbacks.

The peso, which is heavily controlled by the Central Bank, slipped 0.16 percent to 3.0175/3.11 per dollar ARS=RASL in formal interbank trade. (Reporting by Jorge Otaola; Writing by Helen Popper; Editing by James Dalgleish)

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