EMERGING MARKETS-Mexico stocks lowest since November, Brazil down
* Brazil's miner Vale drops on China demand concerns * Mexican homebuilders tumble to record lows * Brazil Bovespa falls 1.07 pct, Mexico IPC down 1.28 pct MEXICO CITY, March 19 (Reuters) - Brazilian stocks fell on Tuesday as iron miner Vale sank to a more than six-month low on concerns Chinese demand could sag, while Mexican shares hit their lowest since late November. Domestic concerns about Brazilian and Mexican stocks weighed sentiment down through the start of the year, but fears of a financial meltdown in Cyprus has revived concerns about Europe's debt crisis, sapping demand for riskier assets. Brazil's benchmark Bovespa stock index fell for the fifth session in six, losing 1.07 percent to 56,361.24 points, setting the index up to test a key support level around 56,000 points in the coming sessions if the slide continues. Vale SA, the world's biggest iron ore miner, fell 3.89 percent amid concerns global iron miners are ramping up output, even as demand from China could flag. "The prospect of a fall in the price of iron ore by factors related to demand from China also ended up weighing in the commodities sector as a whole," said analyst Rogerio Oliveira at Icap Brazil in Rio de Janeiro. Concerns about sluggish domestic growth and rising inflation have made Brazil's stock market one of the world's worst performers in recent months, but it should make up ground in 2013 as the threat of government intervention eases and the global economy recovers, a Reuters poll found. Mexico's IPC index fell for the second straight session to close down 1.28 percent, its lowest since Nov. 30 and accumulating its worst two-session slide since late 2011. The shares of Mexican homebuilders tumbled to record lows on Tuesday after a downgrade by brokerages deepened doubts the battered industry will recover anytime soon. Homex shares fell through a key support level, losing 15 percent after Goldman Sachs cut its rating on the stock to "sell" on Monday, when local markets were closed for a holiday. Copper miner Grupo Mexico slipped 3.57 percent. The shares of billionaire Carlos Slim's America Movil , Latin America's biggest telecommunications and pay TV company, rose 1.55 percent as it bounced back from its lowest level in nearly four years, hit on Friday. Before Tuesday's rebound, Slim's flagship company had shed more than a quarter of its value since mid-February, when it posted disappointing earnings. The stock renewed its tumble last week when the new Mexican government proposed a sweeping bill to loosen Slim's hold on the telecommunications market. The lower house of Congress is expected to vote this week on the bill. Despite a slump so far this year, Mexican stocks are seen climbing back to record highs this year, according to a Reuters poll, on optimism about a raft of economic reforms and a steady flood of international capital from investors. Chile's IPSA index snapped a six-day slide to rise 0.61 percent from a more than two-month low, helped by a 1.69 percent gain in the shares of retailer Falabella. Latin America's key stock indexes at 1523 GMT: Stock indexes daily % YTD % Latest change change MSCI LatAm 3,772.73 -0.91 -0.66 Brazil Bovespa 56,361.24 -1.07 -7.53 Mexico IPC 42,060.61 -1.28 -3.76 Chile IPSA 4,431.04 0.61 3.01 Chile IGPA 21,718.64 0.51 3.08 Argentina MerVal 3,419.26 -0.79 19.79 Colombia IGBC 13,958.84 -1.34 -5.14 Peru IGRA 19,815.95 -1.68 -3.94 Venezuela IBC 630,791.06 0.23 33.80
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