EMERGING MARKETS-Latam stocks fall, Brazil hits 2-month low

Fri Nov 8, 2013 4:58pm EST

* Brazil Bovespa down 0.93 pct, Mexico IPC falls 0.36 pct

MEXICO CITY Nov 8 (Reuters) - Brazilian stocks hit a two month low on Friday, leading Latin American bourses down after strong U.S. payrolls data upped investor expectations for a near-term tapering of monetary stimulus from the Federal Reserve.

Shares of Brazil's state-run oil company, Petroleo Brasileiro SA dragged on Brazil's Bovespa index while Mexico's IPC index slumped for the fifth straight day.

U.S. employers added more new jobs to their payrolls last month than analysts expected, which could lead the U.S. Federal Reserve to begin slowing the monetary stimulus that has helped underpin demand for Latin American equities.

Brazil's Bovespa index fell for the fourth straight day, losing 0.93 percent to 52,248.86, its lowest close since early September.

"The payroll data increases the probability of tapering in December," said Hamilton Alves, a senior analyst with BB Investimentos in Sao Paulo.

Alves said not everyone in the market was convinced the stimulus reduction would begin this year, however, which helped keep the index from falling further on Friday.

"Also, we've already had a bit of a fall over the past few days, and we're near support levels near 51,780 points," he added. "We could see a bounce-back next week."

Shares of Petrobras fell 1.8 percent, while Banco Bradesco dipped 3.57 percent, contributing most to the index's decline.

Shares of TIM Participacoes SA, Brazil's second-largest wireless phone company, shed 3.89 percent after parent company Telecom Italia said it plans to sell its Argentine affiliate.

Mexico's IPC index slipped 0.36 percent to 39,864.16, its lowest level in two months.

Spending on machinery, equipment and new construction in Mexico declined in August, data showed Friday, which suggests lower optimism among the nation's businesses for stronger economic growth ahead.

Shares of Mexican broadcaster Televisa, the world's biggest producer of Spanish-language content, fell 2.91 percent, while tycoon Carlos Slim's telecom giant America Movil dropped 1.15 percent.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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