* U.S. jobs report for June better than expected
* China to begin tightening credit
* Brazil Bovespa falls 1.21 pct, Mexico IPC down 1.40 pct
By Lucas Iberico-Lozada
SAO PAULO, July 5 Latin American stocks fell on
Friday as better-than-expected U.S. labor data heightened
expectations the U.S. Federal Reserve would begin to taper its
bond-buying program later this year.
Brazil's benchmark Bovespa index erased most of its
gains from the previous session, while Mexico's IPC index
had its biggest one-day drop in more than two weeks and Chile's
bourse slipped for the fourth session in the last five.
Abundant global liquidity from the world's major central
bank has supported demand for riskier emerging market assets
such as Latin American stocks.
Fed chairman Ben Bernanke's announcement two weeks ago of a
timeline for ending the monetary stimulus sent Latin American
"Good news (in the United States) now means that the Bovespa
drops," said economist Andre Perfeito of Gradual Corretora in
Sao Paulo. "We are living in a moment of transition for foreign
China's government also said on Friday that it tightened
credit to end the Chinese economy's dependence on cheap debt.
* Brazilian stocks fell 1.21 percent to close at 45,210
points, with a 5.08 percent drop in the share prices of
state-run oil company Petroleo Brasileiro SA, known
as Petrobras, driving losses. Petrobras shares closed Friday's
session at their lowest in 4-1/2 years.
* Mexico's IPC index fell 1.40 percent to 40,623.09
points, with losses driven by a 1.36 percent drop in shares of
telecommunications firm America Movil, controlled by
billionaire Carlos Slim.
* Chile's IPSA index dropped 0.89 percent to
3,831.29 points, as shares of retailer Falabella lost
0.94 percent. The index posted a nearly 5 percent weekly loss,
its worst since May 2012.
Latin America's key stock indexes at 2147 GMT:
Stock indexes Latest daily % change
MSCI LatAm 3,050.15 -1.9
Brazil Bovespa 45,210.49 -1.21
Mexico IPC 40,623.09 -1.4
Chile 3,831.92 -0.89
Chile 19,019.50 -0.78
Argentina MerVal 3,063.69 -1.04
Colombia IGBC 12,628.16 -0.78
Peru 15,181.70 -1.52
Venezuela IBC 0.00 0