EMERGING MARKETS-Brazil stocks drop on China inflation data

Fri Jan 11, 2013 10:14am EST

* China annual consumer inflation speeds in Dec
    * Commodities firms weigh on Brazil's Bovespa
    * Bovespa falls 0.53 pct, Mexico IPC flat

    By Asher Levine and Danielle Assalve
    SAO PAULO, Jan 11 (Reuters) - Brazilian stocks fell on
Friday after data showed China's annual consumer inflation rate
accelerated in December, narrowing the scope for growth-boosting
monetary stimulus in the country's top trading partner. 
    Chile's bourse fell for the first session in nine,
while Mexico's IPC index remained flat.
    Commodities producers contributed most to the 0.53 percent
fall in Brazil's benchmark Bovespa stock index after
data on Friday showed China's annual consumer inflation rate hit
a seven-month high in December. 
    "If inflation isn't under control there is less space for
the government to stimulate growth," said Marcelo Varejao, an
analyst with Socopa Corretora in Sao Paulo. "China continues to
be a very big influence on Brazil as steelmakers, miners and oil
producers are a huge part of the market."
    China is a key purchaser of Latin American commodities
exports such as iron-ore, soy, copper and petroleum.
    Shares of iron-ore mining giant Vale SA, which
counts China as its biggest customer, fell 2.14 percent,
contributing most to the Bovespa's losses, while steelmaker
Companhia Siderurgica Nacional SA lost 1.5 percent.
    Shares of retailer Grupo Pão de Açúcar SA lost
3.5 percent, the steepest drop in nearly three months, after the
company said Friday sales growth slowed in the fourth quarter
and that it opened fewer stores than promised last year.
 
    Mexico's IPC index was little changed at 44,829.82
points, as a 1 percent rise in shares of conglomerate Alfa
 offset a 0.32 percent fall in telecommunications firm
America Movil, controlled by billionaire Carlos Slim.
    Chile's IPSA index snapped an eight-day rally,
falling 0.37 percent as profit-takers sold off shares of
industrial conglomerate Copec, which fell 1.66 percent.
   
    Latin America's key stock indexes at 1454 GMT:
 Stock indexes                          daily %     YTD %
                          Latest         change    change
 MSCI LatAm                  3,908.64     -0.36      3.29
                                                 
 Brazil Bovespa             61,351.99     -0.53      0.66
                                                 
 Mexico IPC                 44,829.82     -0.07      2.57
                                                 
 Chile IPSA                  4,444.06     -0.37      3.32
                                                 
 Chile IGPA                 21,697.66     -0.33      2.98
                                                 
 Argentina MerVal            3,141.18      0.86     10.05
                                                 
 Colombia IGBC              14,732.69     -0.05      0.11
                                                 
 Peru IGRA                  21,954.32      0.24      6.42
                                                 
 Venezuela IBC             473,891.25     -0.02      0.52