MEXICO CITY, March 7 Latin American stocks fell
on Friday, with Brazil's Bovespa index dropping nearly 2 percent
as doubts over future Chinese demand for the country's metals
hit mining and steel producers.
China recorded its first domestic bond default as expected
on Friday, bringing copper to a seven-month low on growth fears
in the world's second-largest economy.
The default led to a rout of Brazilian steel producers and
miners. Iron ore miner Vale lost 3.63 percent, while
steel producer Usiminas fell 5.61 percent. Fellow
steelmaker Companhia Siderúrgica Nacional SA dropped
Markets had begun the day in stronger form, after data
showed the United States created more jobs in February than
forecast, easing fears of a slowdown in the world's largest
While the stronger-than-expected number was a relief to
investors, who feared a U.S. economic slowdown would weigh on
global growth prospects, it also reinforced expectations that
the Federal Reserve will continue to wind down the monetary
stimulus that for years has supported appetite for risk in
Latin American currencies are sensitive to potential dollar
outflows induced by the Fed's tapering. The Mexican peso
ended the day 0.27 percent weaker at 13.188 pesos per
dollar, while Brazil's real lost 1.2 percent.
Mexico's IPC stock index closed down 0.67 percent.
Shares in Televisa, which announced it had been declared
dominant by the telecoms regulator and would be forced to share
infrastructure, fell 2.33 percent, while Grupo Mexico
a major copper producer lost 3.38 percent.