EMERGING MARKETS-Brazil stocks slumps off 7-month high, Mexico falls
MEXICO CITY, Oct 23 (Reuters) - Brazilian stocks fell back from a seven-month high on Wednesday and Mexican stocks slipped on concerns over tighter monetary policy in China, one of Latin America's top trading partners. Brazilian stocks have bounced back from a four-year low in July on bets that the worst of a slowdown in Brazil, Latin America's biggest economy, was behind. Before Wednesday, the country's main index was up more than 25 percent since July. In Mexico, the region's second biggest economy, stocks fell off a record high early this year as growth slowed. Mexican stocks have traded in an increasingly narrow range in recent weeks. Most companies will report earnings later this week. * Brazil's benchmark Bovespa stock index snapped a three-day winning streak to drop 1.81 percent - the biggest one-day percentage fall this month. On Tuesday, stocks had closed right above a key resistance level. * A policy adviser to the People's Bank of China told Reuters on Tuesday that the authority may tighten cash conditions in the financial system to address inflation risks, which could also sap economic growth in a key market for Latin American iron ore, soybeans, oil and copper. * Shares of iron-ore producer Vale SA shed 1.8 percent, while rival MMX Mineracao e Metalicos SA sank 4.17 percent. * Lender Banco Bradesco SA fell 2.03 percent after JPMorgan Securities analysts lowered their recommendation on the shares to "neutral" from "overweight," saying a recent rally in the stock has made it less attractive. * Brazil must take more decisive action to raise productivity and boost private investment if it is to restore robust growth to its once-booming economy, the International Monetary Fund said on Wednesday in its annual economic assessment of Brazil. * Mexico's IPC index fell 0.64 percent as shares of telecommunications firm America Movil, controlled by billionaire Carlos Slim, slipped 1.01 percent. * Mexico's biggest retailer, Wal-Mart de Mexico , fell 0.65 percent. After market close, the company reported that third-quarter profit rose 0.74 percent from a year earlier, helped by higher sales and new store openings. * Mexican supermarket chain Grupo Comercial Chedraui fell 0.73 percent, paring losses after it said its third-quarter profit rose 2.5 percent, helped by new store openings. Latin America's key stock indexes at 2100 GMT: Stock indexes daily % YTD % Latest change change MSCI LatAm 3,452.83 -1.51 -9.08 Brazil Bovespa 55,440.03 -1.81 -9.04 Mexico IPC 40,552.59 -0.64 -7.21 Chile IPSA 3,930.06 0.9 -8.63 Chile IGPA 19,297.81 0.7 -8.41 Argentina MerVal 5,363.47 -4.5 87.91 Colombia IGBC 14,274.76 -0.27 -3.00 Peru IGRA 16,197.65 -0.54 -21.48 Venezuela IBC 2,012,806.06 1.11 326.95
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