By Shane Romig

Of DOW JONES NEWSWIRES

BUENOS AIRES (Dow Jones)–Argentine stocks surged Tuesday as bargain hunters swooped in and on speculation that the government is set to throw a lifeline to embattled local power companies.

Argentina’s benchmark Merval stock index shot up 6% to close at 2,384.26 points, with volume relatively high at 77 million pesos ($18 million.)

But despite the surge in Buenos Aires, overseas listings of Argentine companies were dragged down by the global selloff due to …

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