EMERGING MARKETS-Latam markets weaken on Ukraine concerns

Thu Aug 28, 2014 10:42am EDT

SAO PAULO, Aug 28 (Reuters) - Latin American currencies and
stocks weakened on Thursday after escalating tensions in Ukraine
overshadowed encouraging U.S. economic data and sapped demand
for riskier assets.
    The broader MSCI Latin American stock index 
moved lower after a three-day rally, while most of the region's
currencies declined slightly.
    Ukraine's president said on Thursday that Russian forces had
entered his country and the military conflict was worsening. In
response, investors moved toward safe-haven assets such as
German government bonds and the U.S. dollar. 
    The dollar was also boosted by data that showed the U.S.
economy rebounded more strongly in the second quarter than
initially reported, while the number of Americans filing new
applications for jobless benefits fell last week.
 
    "Everything that we are seeing from abroad today is pushing
the dollar higher," said TarcĂ­sio Rodrigues, head of currency
trading at Sao Paulo's Banco Paulista.
    The Brazilian real weakened for the first session in
three. Investors will keep their eyes on official gross domestic
product data, due on Friday morning.
    Argentina's official peso rate stood nearly unchanged
at 8.40 to the dollar after the government on Thursday ruled out
a second sharp devaluation of the currency this year. The black
market rate sits at 14.33 per dollar, according to
Wednesday's data. 
    Peru's Nuevo Sol edged lower after the government on
Wednesday cut the official estimate for economic growth this
year to 4.2 percent from 5.7 percent. 
    In equity markets, Brazil's Bovespa stock index 
dropped from a 19-month high, weighed down by a sharp fall in
mining firm Vale SA.
    Vale shares were off about 7 percent in the six sessions
through Thursday, mostly due to declining prices for iron ore,
the company's main product.
    
    Key Latin American stock indexes and currencies at 1422 GMT:
    
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets           1086.92     -0.62      9.08
                                                    
 MSCI LatAm                      3612.01     -0.36     13.26
                                                    
 Brazil Bovespa                 60589.96     -0.59     17.63
                                                    
 Mexico IPC                     45405.89     -0.43      6.27
                                                    
 Chile IPSA                      3964.46     -0.22      7.17
                                                    
 Chile IGPA                     19297.59     -0.19      5.87
                                                    
 Argentina MerVal                      0         0   -100.00
                                                    
 Colombia IGBC                   14561.5     -0.04     11.40
                                                    
 Peru IGRA                      17050.52      0.14      8.23
                                                    
 Venezuela IBC                   2596.75         0     -5.11
                                                    
                                                            
 Currencies                                daily %     YTD %
                                            change    change
                                  Latest            
 Brazil real                      2.2500     -0.23      4.75
                                                    
 Mexico peso                     13.0955     -0.09     -0.50
                                                    
 Chile peso                        592.5     -0.42    -11.21
                                                    
 Colombia peso                   1938.19     -0.45     -0.32
 Peru sol                          2.848     -0.04     -1.93
                                                    
 Argentina peso (interbank)       8.4000      0.03    -22.71
                                                    
 Argentina peso (parallel)         14.33     -0.91    -30.22
                                                    
 
 (Reporting by Asher Levine and Bruno Federowski; Editing by
Jeffrey Benkoe)
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