EMERGING MARKETS-Latam stocks slip on U.S. data, Vale supports Bovespa

Wed Apr 3, 2013 11:40am EDT

* U.S. hiring, service sector growth miss estimates
    * Brazil miner Vale up on bargain-hunting
    * Mexico IPC falls 0.22 pct, Brazil Bovespa up 0.28 pct

    By Asher Levine
    SAO PAULO, April 3 (Reuters) - Latin American stocks dropped
for the third straight session on Wednesday after weaker than
expected economic data from the United States sapped demand for
riskier assets. 
    Mexico's IPC index fell for the second session in
three while an over 2 percent jump in shares of mining firm Vale
SA supported Brazil's Bovespa.
    The MSCI Latin American stock index fell
0.27 percent to 3,757.79 and dropped below its 150-day simple
moving average, a technical level that has helped support the
index since late November.
    Shares declined after data on Wednesday showed U.S.
companies hired at the slowest pace in five months in March,
with new jobs falling short of economists' expectations.
 
    Additional data that showed the pace of growth in the U.S.
services sector in March was the slowest in seven months added
to concerns over the strength of a recovery in the world's
largest economy. 
    "The data contributed to weaker global markets today, but
what people are really waiting for is the payrolls numbers on
Friday," said Pedro Galdi, a broker with SLW Corretora in Sao
Paulo.
    The U.S. government's more comprehensive labor market
report, due on Friday, includes both public and private sector
employment and is expected to show the economy is gaining steam.
 
    Mexico's IPC index fell 0.22 percent to 44,017.63 as shares
of telecommunications firm America Movil, controlled
by billionaire Carlos Slim, slipped 1.7 percent.
    Brazil's benchmark Bovespa stock index whipsawed
throughout early trading, though later moved into slightly
positive territory as shares of iron-ore miner Vale SA
 rose 2.3 percent.
    Traders said gains in the heavily weighted commodities
producer were mostly due to bargain hunting after the stock
posted three straight days of declines.
    Shares of homebuilder Gafisa SA jumped 6.7
percent after a local newspaper reported that the debt-laden
company had received four offers for its high-end Alphaville
unit. 
    Brazil's Bovespa has been hovering near its lowest levels in
about eight months due to flagging confidence in the local
economy and worries over government intervention in the private
sector. Still, some analysts say that low share prices,
especially for commodities producers, could boost the index in
the short-term.
    "We are near a support level at 55,000 points and, if
external markets remain stable, we could see a rebound here,"
said Joao Pedro Brugger, an analyst with Leme Investimentos in
Florianopolis, Brazil. 
    Chile's IPSA index fell for the third straight
session, losing 0.76 percent to 4,362.93 as shares of retailer
Falabella slipped 2.5 percent. 
    
    Latin America's key stock indexes at 1446 GMT:
    
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,757.79     -0.27     -0.79
                                                   
 Brazil Bovespa               55,042.58      0.28     -9.70
                                                   
 Mexico IPC                   44,017.63     -0.22      0.71
                                                   
 Chile IPSA                    4,362.93     -0.76      1.43
                                                   
 Chile IGPA                   21,437.16      -0.5      1.74
                                                   
 Argentina MerVal              3,380.78     -1.06     18.45
                                                   
 Colombia IGBC                13,990.17     -0.24     -4.93
                                                   
 Peru IGRA                    19,647.49     -0.28     -4.76
                                                   
 Venezuela IBC               629,803.25      0.48     33.59
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