EMERGING MARKETS-Latam stocks fall on global growth concerns

* U.S., China manufacturing remain weak in Sept
* Euro zone service sector shrinks
* Brazil Bovespa falls 0.94 pct, Mexico IPC down 0.34 pct

By Asher Levine and Danielle Assalve
SAO PAULO, Sept 20 (Reuters) - Latin American stocks fell
the most in over two weeks on Thursday after disappointing data
from China, the United States and the euro zone underscored
concerns that a global economic recovery is still facing
significant headwinds.
The MSCI Latin American stock index fell for
the third session in four, losing 0.82 percent to 3,737.74 and
falling below its 200-day simple moving average, a level the
index has struggled to remain above since early May.
Commodities exporters and steelmakers dragged Brazil's
Bovespa index to its sharpest loss since Sept. 4, while
retailers weighed on Mexico's bourse.
Increasing concern over global economic growth sapped demand
for riskier assets after data Thursday showed U.S. manufacturing
closed out its weakest quarter in three years in September and
China's manufacturing sector shrank for the 11th straight month.
China is Brazil's biggest trading partner and a key
purchaser of Latin American commodities exports such as
iron-ore, copper, soy and petroleum.
Adding to worries, purchasing managers' index data on
Thursday showed the downturn in activity in the euro zone's
service sector steepened this month at the fastest pace since
July 2009.
"Bottom line is...there aren't signs that the world is
really in a recovery," said Flavio Barros, a manager with Grau
Asset Management in Sao Paulo. "Investors will continue to await
a new round of data to see if this represented rock bottom. For
now, the market should continue at this level."
Brazil's benchmark Bovespa stock index slipped 0.94
percent to 61,071.82.
"The market is trying to stabilize at these levels, between
60,000 and 62,000 points," Barros added.
Preferred shares of Vale, the world's largest
iron-ore miner, lost 1.5 percent, contributing most to the
index's losses, while steelmaker CSN dropped 1.7
percent.
Units of investment banking powerhouse BTG Pactual
fell 1.4 percent after it said on Thursday that its
private-equity unit would purchase an additional 30 percent
stake in local apparel retailer Leader Participações.

Shares of state-controlled oil firm Petrobras
gained 0.93 percent after the company said late Wednesday that
analysis confirmed the discovery of "good quality" crude in a
deepwater field south of Rio de Janeiro.
Mexico's IPC index fell for the third session in
four, dropping 0.34 percent to 40,800.13.
Shares of retail giant Wal-Mart de Mexico lost
0.64 percent as data Thursday showed Mexican retail sales fell
by the most in seven months in July.
Fund managers are shifting the composition of their
portfolios from Brazilian stocks to Mexican shares to protect
themselves against further slowing in China, as Mexico has lower
trade exposure to Asia.
Chile's IPSA index traded little-changed, with
losses by industrial conglomerate Copec offsetting
gains by retailer Falabella

Latin America's key stock indexes at 14:30 GMT:

Stock indexes daily % yearly %
Latest change change
MSCI LatAm 3,737.74 -0.82 4.62

Brazil Bovespa 61,071.82 -0.94 7.61

Mexico IPC 40,800.13 -0.34 10.04

Chile IPSA 4,220.76 0.07 1.03

Chile IGPA 20,502.15 0.08 1.85

Argentina MerVal 2,476.28 -0.7 0.55

Colombia IGBC 14,317.17 -0.21 13.04

Peru IGRA 21,607.27 -0.54 10.96

Venezuela IBC 303,279.34 0.64 159.13