EMERGING MARKETS-Bovespa hit by China data, ore prices; America Movil sinks IPC

Mon May 19, 2014 12:21pm EDT

By Asher Levine
    SAO PAULO, May 19 (Reuters) - Latin American stocks dropped
on Monday as a decline in iron ore prices hammered shares of
Brazilian miner Vale while America Movil drove losses in
Mexico's bourse after AT&T said it would sell its stake in the
Mexican telecommunications firm.
    The broader MSCI Latin American stock index 
nearly erased the previous session's gains though most of the
region's currencies strengthened slightly against the dollar.
    Data from China on Sunday showed annual growth in average
new home prices slowed to an 11-month low in April, raising
concerns over an economic slowdown in the key consumer of Latin
American commodities, including copper, soybeans and iron ore.
    That caution should remain in place until China's government
announces stimulus measures, analysts from BB Investimentos
wrote on Monday, citing what they see as the "inevitable
continuation of an economic slowdown" in the country.
    Preferred shares of Vale SA, which counts China
as its biggest customer, sank by their most in three weeks as
spot iron ore for immediate delivery to China .IO62-CNI=SI
dropped to its lowest since September 2012. 
    Steelmakers and commodities producers also fell, driving
Brazil's Bovespa stock index to a 1 percent loss.
    Mexico's IPC stock index fell about 0.6 percent as
shares of telecommunications firm America Movil posted
their biggest one-day drop in nearly two months.
    The fall came after AT&T said it would sell its
roughly 8 percent stake in the Mexican firm and withdraw its
board members in order to help it gain regulatory approval for
its purchase of DirecTV. 
    Latin American currencies were mostly stronger against the
dollar, though moves were muted.
    Chile's peso posted the biggest gain in the region,
strengthening 0.46 percent to 548.2 per dollar.
    The peso, which has risen about 3.4 percent over the past 10
sessions, was bolstered by stronger than expected economic
growth data on Monday and a nearly 1 percent gain in the price
of copper, the country's main export.
    
    Key Latin American stock indexes and currencies at 1603 GMT:
    
 Stock indexes                 Latest        Daily   YTD pct
                                               pct    change
                                            change  
 MSCI Emerging Markets          1,035.95      0.39      2.92
                                                    
 MSCI LatAm                     3,370.45     -0.51      5.84
                                                    
 Brazil Bovespa                53,432.83     -1.01      3.74
 Mexico IPC                    41,670.11     -0.55     -2.47
 Chile IPSA                     3,942.34     -0.68      6.57
 Chile IGPA                     19,285.5      -0.5      5.81
 Argentina MerVal               6,987.22      1.57     29.61
                                                    
 Colombia IGBC                 13,648.11      -0.1      4.41
 Peru IGRA                     15,724.58     -0.17     -0.18
 Venezuela IBC                  2,141.44     -2.03    -21.75
                                                            
 Currencies                                  Daily   YTD pct
                                               pct    change
                                  Latest    change  
 Brazil real                      2.2040      0.39      6.93
 Mexico peso                     12.8935      0.06      1.06
 Chile peso                        548.2      0.46     -4.03
 Colombia peso                  1,920.69      0.25      0.59
 Peru sol                          2.786      0.11      0.25
 Argentina peso (interbank)       8.0675     -0.15    -19.52
                                                    
 Argentina peso (parallel)         11.12      0.09    -10.07
                                                    
 
        

 (Additional reporting by Priscila Jordao)
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