MEXICO CITY, Nov 25 (Reuters) - Foreign investor inflows to Mexican stocks and bonds picked up in the third quarter as the Federal Reserve kept its monetary stimulus program unchanged, a Mexican central bank report said on Monday.
Foreign portfolio investment in Mexican stocks as well as corporate and government debt nearly doubled to just over $16 billion in the July to September period, the central bank said in a statement.
Net investments in Mexican stocks and corporate debt rose to $3.669 billion after market players had pulled out nearly a net $5 billion in the second quarter. Investments into peso-denominated government debt also rose.
Emerging markets around the world had suffered this year amid bets the U.S. Federal Reserve would cut back its bond-buying program this year. The Fed's monetary stimulus has supported demand for riskier assets.
But investors piled back into Latin America's second-biggest economy during the third quarter as expectations after the Fed surprised investors and did not cut back its bond-buying program aimed at keeping interest rates low in the United States.
Meanwhile, investment by foreigners in Mexican factories and businesses fell to $3.389, down sharply from the second quarter when foreign direct investment (FDI) reached more than $18 billion due to beer giant Anheuser-Busch InBev's acquisition of Grupo Modelo.
FDI was also down by about one-third from the third quarter of 2012.
The country's current account deficit was $5.457 billion in the third quarter, widening slightly from the second quarter. The deficit was the equivalent of 1.7 percent of gross domestic product.
(Reporting by Michael O'Boyle Editing by W Simon) Keywords: MEXICO ECONOMY/ACCOUNT
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