EMERGING MARKETS-Latam stocks fall on China data, Fed worries
* Weak Chinese manufacturing hurts commodities stocks * Global markets open lower after Bernanke's comments * Brazil's Bovespa down 1.5 pct; Mexico's IPC falls 0.27 By Danielle Assalve Sao Paulo, May 23 (Reuters) - Latin American stocks fell on Thursday on surprisingly weak economic data from key trade partner China and concerns the U.S. Federal Reserve will scale back stimulus measures that have boosted emerging market assets. Brazil's Bovespa stock index fell 1.5 percent while Mexico's IPC slumped 0.27 percent for the third consecutive day. Chile's IPSA index also fell 0.86 percent. "Not only did we have an increase in risk aversion due to fears the United States will pull back monetary stimulus, we also had an unexpected contraction of manufacturing data in China," analysts from Sao Paulo-based brokerage Banrisul wrote in a report. A preliminary manufacturing survey on Thursday showed China's factory activity shrank for the first time in seven months in May, hurting shares of stocks associated with commodities sold to the Asian giant. Shares of Brazil's Vale , the world's second largest miner and largest iron ore provider, fell nearly 3 percent on the Bovespa. Mexico's largest domestic miner, Grupo Mexico also fell 1.69 percent on the IPC index. Stocks around the world opened lower on Thursday, the day after Fed Chairman Ben Bernanke told Congress the U.S. central bank could slow the pace of bond buying if economic improvement continued. This could slow the flow of capital that has been invested in high-yielding emerging markets in recent years. Latin America's key stock indexes at 15:00 GMT. Latin American market prices from Reuters Stock indexes daily YTD % % chang Latest chang e e MSCI LatAm 3,619.7 -1.97 -2.77 <.MILA00000PU 6 S> Brazil 55,580. -1.5 -8.81 Bovespa 27 Mexico IPC 40,011. -0.27 -8.45 21 Chile IPSA 4,231.7 -0.9 -1.62 5 Chile IGPA 20,830. -0.71 -1.14 61 Argentina 3,502.2 -1.28 22.70 MerVal 8 Colombia IGBC 13,322. -0.05 5.19 88 Peru IGRA 16,709. -0.16 -19.0 46 0 Venezuela IBC 779,401 0 65.32 .50
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