September 4, 2013 / 2:21 PM / 4 years ago

EMERGING MARKETS-Brazil stocks drop on Syria worries

* Putin does not rule out support for Syria strike
    * Commodity firms weigh down Brazil's Bovespa
    * Bovespa falls 0.72 pct, Mexico's IPC index flat

    SAO PAULO, Sept 4 (Reuters) - Brazil's benchmark stock index
dropped on Wednesday as shares of commodity exporters fell on
increasing concerns about a potential military strike against
Syria.
    Chile's bourse edged higher, while Mexico's IPC
index was little changed.
    Russian President Vladimir Putin, a key critic of U.S.-led
plans to attack Syrian President Bashar al-Assad's forces
following their alleged use of poison gas, said on Wednesday
that he did "not rule out" his support if the use of gas were
proven and the strike won backing from the U.N. Security
Council. 
    The remarks increased investor concern about an impending
strike and its potential to disrupt the global economy, sapping
demand for riskier assets and driving demand for safe-haven
investments like the U.S. dollar.
    Brazil's benchmark Bovespa stock index fell by the
most in more than a week, shedding 0.72 percent to 51,253.31.   
 Shares of commodity exporters, which often track the outlook
for global economic growth, contributed most to the decline.
    Shares of iron-ore mining giant Vale SA fell 0.84
percent while those of state-run oil firm Petroleo Brasileiro SA
, known as Petrobras, slipped 0.54 percent.
    Homebuilder Cyrela Brazil Realty SA rose 0.5
percent. Cyrela late on Tuesday approved a plan to repurchase up
to 8.1 percent of the firm's total stock in circulation,
totaling about 22.38 million shares.
    Mexico's IPC index erased early losses to trade
little changed from Tuesday's closing levels.
    Shares of mining firm Grupo Mexico lost 2
percent. The company late on Tuesday lowered its estimate for
copper production this year by 3.5 percent from previous
forecasts. 
    Shares of bottler Coca-Cola Femsa edged 0.1
percent lower. The firm said on Tuesday it was still open to
more acquisitions after its $1.9 billion purchase of Brazil's
Spaipa last week. 
    Chile's IPSA index rose for the fourth session in
five, led by a 1.9 percent gain in LATAM Airlines Group
.
    
    Latin America's key stock indexes at 1356 GMT:
 Stock indexes                              daily %     YTD %
                              Latest         change    change
 MSCI LatAm                      3,060.61      0.72    -19.99
                                                     
 Brazil Bovespa                 51,253.31     -0.72    -15.91
                                                     
 Mexico IPC                     39,547.27      0.01     -9.51
                                                     
 Chile IPSA                      3,619.34      0.16    -15.86
                                                     
 Chile IGPA                     17,950.83      0.13    -14.80
                                                     
 Argentina MerVal                    0.00         0   -100.00
                                                     
 Colombia IGBC                  13,736.31      0.01     -6.66
                                                     
 Peru IGRA                      16,896.28     -0.19    -18.10
                                                     
 Venezuela IBC               1,365,401.80         0    189.63

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