EMERGING MARKETS-Latam stocks down on Syria uncertainty
* Possible U.S. military action drives shares down, dollar up * Oil watchdog rejects OGX plan to modify production site * Brazil Bovespa down 1.55 pct, Mexico IPC falls 0.73 pct By Lucas Iberico-Lozada SAO PAULO, Aug 27 (Reuters) - Brazilian stocks tracked world markets lower on Tuesday, as uncertainty over potential U.S. military action against the Syrian government drove investors away from risky assets. Mexico's IPC index declined for the fifth session in a row, while Chile's bourse approached its lowest levels in nearly two years. "The Bovespa is reflecting the strong aversion to risk seen worldwide in relation to Syria," said Newton Rosa, chief economist at SulAmerica Investimentos in Sao Paulo. "The situation is affecting primary markets, metals and commodities." Uncertainty over a potential U.S. military action against the Syrian government of Bashar al-Assad caused the dollar to rise sharply on Tuesday, as investors sought refuge in low-risk U.S. Treasuries. The Brazilian real weakened to 2.41 reais to the U.S. dollar, near the 2.45 per dollar level it reached last week, its weakest since December 2008. Brazil's benchmark Bovespa stock index fell for the second session in a row, dipping 1.55 percent to 50,630.15 points. Shares of OGX Petroleo e Gas Participacoes SA, the oil company controlled by Brazilian tycoon Eike Batista, fell as much as six percent after Reuters reported that Brazil's oil industry watchdog plans to reject OGX's proposal to modify development of Tubarao Azul, its first producing offshore oil field. Shares of Batista's shipbuilding firm, OSX Brasil SA , fell 5.6 percent after the company said on Tuesday that Batista would be injecting as much as $50 million into the company with proceeds from the sale of part of his holdings in the company. State-run oil company Petroleo Brasileiro SA, known as Petrobras, and mining giant Vale SA saw losses of 2.4 percent and 3.8 percent, respectively. Mexico's IPC index slipped to below 40,200 points for the first time in over a month, as shares of miner Grupo Mexico fell over 1 percent. Also down were shares of lender Santander Mexico and conglomerate Alfa. Chile's IPSA index fell 0.68 percent to 3,616.30, its ninth session of losses in ten. The IPSA has shed 15.9 percent this year. Latin America's key stock indexes at 1453 GMT: Stock indexes daily % YTD % Latest change change MSCI LatAm 3,032.38 -2.22 -18.34 Brazil Bovespa 50,630.15 -1.55 -16.93 Mexico IPC 40,124.72 -0.73 -8.19 Chile IPSA 3,616.30 -0.68 -15.93 Chile IGPA 17,980.33 -0.53 -14.66 Argentina MerVal 3,833.91 -1.62 34.32 Colombia IGBC 13,566.09 -0.25 -7.81 Peru IGRA 16,922.89 0.4 -17.97 Venezuela IBC 1,323,590.00 0 180.76
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