EMERGING MARKETS-Latam stocks fall on China data, Fed worries

Thu May 23, 2013 11:16am EDT

Related Topics

* 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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