Chile peso at new 4-yr low as copper slips, stocks flat

SANTIAGO Oct 23 (Reuters) - Chile's peso closed at a new 4-year low on Thursday after prices for No. 1 export copper slipped, while stock indexes moderated gains in volatile mixed trade.

Chile's peso CHILJ CLP=CL closed 1.41 percent weaker at 651.70/652.20 per dollar compared with Wednesday's close at 642.50/643.00 per dollar. On Wednesday the peso hit an intraday five-year low.

"The peso was weaker in earlier trade, but then moderated losses as stocks in New York advanced. Markets are extremely volatile, and the direction changes with any new data," one trader said. "Copper prices are down because fears of a global recession have lowered demand."

The peso has been pummeled as investors dump riskier assets, including emerging currencies, stocks and commodities in favor of the dollar.

Copper, which accounts for more than half the value of Chilean exports, slipped to new three year lows on Thursday, with spot October copper HGV8 trading below $1.80/pound.

Copper prices have fallen by more than half in the last eight weeks after reaching record levels of over $4.00 per pound in July.

Chilean stock indexes trailed the volatile movements of Wall Street, as the blue-chip IPSA index .IPSA pared an earlier gain of 1.5 percent to 0.10 percent at 2,394 points, and the all-market IGPA index .IGPA traded 0.01 percent higher at 11,500 points.

Gains were led by Endesa Spain regional electric utility Enersis ENE.SN, with a jump of 2.63 percent, and by leading bank Santander Chile STG.SN, as its shares gained 2.27 percent.

Blue-chip advances were partially offset by wood pulp exporter Copec COP.SN as its shares fell 1.9 percent and by regional retailer Falabella FAL.SN, with a decline of 2.08 percent. (Reporting by Froilan Romero; Writing by Lisa Yulkowski; Editing by Diane Craft)