EMERGING MARKETS-Brazil stock index slips on China data, homebuilders rise

Thu Jan 23, 2014 10:59am EST

* Brazil Bovespa falls 0.56 pct, Mexico IPC down 0.66 pct

    SAO PAULO, Jan 23 (Reuters) - Commodities producers drove
Brazil's benchmark Bovespa stock index lower on Thursday
following weak manufacturing data from top trade partner China,
though homebuilders lent support.
    Mexico's IPC index erased the previous session's
gains, while Chile's bourse climbed for the second
straight session.
    Activity in China's factory sector contracted in January for
the first time in six months, a preliminary survey showed on
Thursday. China is the No. 1 purchaser of Brazilian commodities
exports such as iron-ore and soybeans, and changes in the
outlook for Chinese economic growth tend to have a strong impact
on some of the Bovespa's most heavily-weighted shares.
 
    Brazil's Bovespa index fell for the fifth session in
six, losing 0.56 percent to 49,023.20. 
    State-run oil company Petroleo Brasileiro SA,
known as Petrobras, fell 1.6 percent, contributing the most to
the index's losses, while iron-ore mining giant Vale SA
, which counts China as its biggest customer, dropped
1.1 percent.
    Homebuilders gained after data on Thursday showed inflation
in Brazil rose less than expected in the month to mid-January.
The data helped lead to a drop in yields on Brazilian interest
rate futures , suggesting financing conditions for home
loans could ease. 
    Shares of builder Rossi Residencial SA rose 1.6
percent, while rival Cyrela Brazil Realty SA added
1.4 percent.
    Mexico's IPC index fell 0.66 percent to 41,786.15, a
level it has not closed below in nearly two weeks.
    Shares of broadcaster Grupo Televisa fell 2.5
percent, while bottling firm Femsa lost 1.7
percent.
    Chile's IPSA index rose 0.21 percent to 3,707.72 as
shares of Banco de Chile climbed 1 percent.
    
    Latin America's key stock indexes at 1538 GMT:
    
 Stock indexes         Latest        daily %    YTD %
                                     change     change
 MSCI LatAm            3,019.85      -1.17      -4.54
                                                
 Brazil Bovespa        49,023.20     -0.56      -4.82
                                                
 Mexico IPC            41,786.15     -0.66      -2.20
                                                
 Chile IPSA            3,707.72      0.21       0.23
                                                
 Chile IGPA            18,282.52     0.19       0.30
                                                
 Argentina MerVal      5,877.97      -0.31      9.03
                                                
 Colombia IGBC         12,568.65     0.02       -3.85
                                                
 Peru IGRA             16,445.38     0.4        4.39
                                                
 Venezuela IBC         2,855.60      0.48       -99.90
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