By Roberta Vilas Boas and Luc Cohen
SAO PAULO/MEXICO CITY June 20 Latin American stocks fell to a
near four-year low on Thursday, with Mexican and Chilean bourses losing more
than 3 percent, a day after the U.S. Federal Reserve laid out a roadmap for
winding down its massive asset-buying scheme.
The MSCI index closed down 5.1 percent, its biggest one-day
fall since late 2011, ending the day at its lowest level since July 2009. The
index, which groups Latin American markets, is down nearly 20 percent so far
Mexico's IPC index at one point fell more than 4 percent, while
Chile's IPSA shed 3.1 percent.
Brazil's benchmark stock index also fell sharply, briefly dipping
below the 46,000-points threshold for the first time in four years, but later
recovered as investors piled in to buy up bargain shares. It ended the day up
The rout came after the U.S. Federal Reserve signaled on Wednesday it would
end a stimulus program that helped pump money into high-yielding emerging market
The prospect of that money soon drying up has sent shockwaves through the
region's emerging markets.
Data pointing to lower growth in China, the top buyer of raw materials
Brazil exports, also weighed.
* Shares in Brazil state-run oil firm Petrobras were down 1.05
percent, tracking oil prices, which saw their biggest single-day decline since
* In Mexico, Finance Minister Luis Videgaray said markets had over reacted
to the Fed comments. Although he expected markets to remain jumpy, he said it
was important to remember a strengthening U.S. economy was good for Mexico,
which sends the bulk of its exports to its northern neighbor.
* Mexican telecoms giant America Movil, controlled by billionaire
Carlos Slim, lost 2.72 percent, while miner Grupo Mexico slid 5.73
* In Chile, retailer Cencosud was the day's big loser, falling 4.68 percent,
as the index ended deep in the red.
Latin America's key stock indexes at 2141 GMT:
Stock indexes Latest Daily pct Year-to-da
change te pct
MSCI LatAm 3,040.19 -5.1 -19.95
Brazil Bovespa 48,214.43 0.67 -20.90
Mexico IPC 37,517.23 -3.91 -14.16
Chile IPSA 3,826.43 -3.06 -11.04
Chile IGPA 19,147.72 -2.45 -9.12
Argentina MerVal 3,070.86 0.75 7.59
Colombia IGBC 12,962.06 -2.46 2.34
Peru IGRA 15,746.10 -4.92 -23.67
Venezuela IBC 954,791.94 1.02 102.53