South American stock markets remain resilient, with overseas capital continuing to flow into Brazilian equities

According to Nikkei Chinese Web on March 21, among emerging market countries, the stability of the Latin American stock markets is particularly notable. Compared to the end of 2025, Latin American stock markets have risen by 8%, maintaining positive growth even after the U.S. attack on Iran. Especially in Brazil, which is highly favored by overseas investors, net purchases since the beginning of the year have already exceeded the total for all of 2025.

As of March 17, the Peruvian stock index has increased by 20% since the end of 2025, the Brazilian stock market has risen by 10%, and the Colombian stock market has increased by 9%.

Foreign funds continue to flow into the Brazilian stock market. Data from B3, the stock exchange, shows that from early 2026 to March 9, foreign investors have accumulated a net purchase of 44.1 billion reais (about 58 billion RMB), more than 1.5 times the total for 2025. After global stock markets became unstable due to the Middle East conflict in March, overseas investors also showed net buying, supporting Brazilian stock prices.

The advantage of Latin American stock markets lies in benefiting from rising resource prices, with oil-producing countries like Brazil and Mexico easily gaining from high oil prices. On March 13, Goldman Sachs in the U.S. adjusted its 2026 corporate earnings outlook considering the Middle East dispute and energy supply shocks. It lowered EPS forecasts for China, India, and Central and Eastern Europe, but only raised those for Latin America. It is expected that Latin America will benefit from rising commodity prices. As the conflict remains unresolved, the positive performance outlook has attracted investment.