EMERGING MARKETS-Latam markets fall across the board after weak China data

BRASILIA, May 3 (Reuters) - Latin American currencies and
stocks fell sharply on Tuesday, erasing part of recent gains
after weaker factory data in China dragged commodities prices
away from four-month highs. 
    Brazil's Bovespa stock index dropped nearly 2
percent and the broader MSCI Latin American stock index
 tumbled 3 percent, while currencies dropped more
than 1 percent against the U.S. dollar.
    Activity at China's factories shrank for the 14th straight
month in April as demand stagnated, a private survey showed.
China is a major buyer of Latin America's raw materials, from
oil to Brazilian iron ore and Chilean copper. 
    Shares of Brazilian miner Vale SA, the world's
largest iron ore producer, fell nearly 5 percent as commodities
prices slipped 1.3 percent.
    Losses in the Brazilian real were intensified by
ongoing central bank intervention. The bank offered reverse
swaps for a third consecutive day on Tuesday as part of its
broader efforts to curb currency gains.
    "All emerging currencies are weakening today. The central
bank (intervention) is just the icing on the cake," said Pedro
Tuesta, an economist with research firm 4Cast.
    Tuesday's drop in Latin American markets contrasted with a
strong first quarter, in which equities and currencies gained
steadily on signs of renewed central bank efforts in the United
States, Japan and Europe to boost economic growth.
    The MSCI Latin American stock index has gained 23 percent so
far this year, while the Brazilian currency strengthened 10
percent to hit an eight-month high last week, despite a two-year
long recession and a paralyzing political crisis.
    Banking shares also weighed on Brazilian equities after Itaú
Unibanco Holding SA, the country's largest bank by
market value, missed first-quarter profit estimates. Itaú shares
dropped more than 4 percent as the recession eroded loan book
quality and prompted the bank to beef up loan-loss provisions.
    Key Latin American stock indexes and currencies at 1556 GMT:
 Stock indexes               Latest          Daily   YTD pct
                                               pct    change
 MSCI Emerging Markets            819.81     -1.89      5.22
 MSCI LatAm                     2,192.36      -2.9      23.4
 Brazil Bovespa                52,588.21     -1.82     21.31
 Mexico IPC                    45,394.71     -0.69      5.62
 Chile IPSA                     3,988.95     -0.38      8.39
 Chile IGPA                    19,616.71     -0.32      8.07
 Argentina MerVal              13,153.41     -2.91     12.66
 Colombia IGBC                  9,735.48     -2.01     13.90
 Venezuela IBC                 15,302.30     -2.02      4.89
 Currencies                       Latest     Daily   YTD pct
                                               pct    change
 Brazil real                      3.5664     -2.18     10.67
 Mexico peso                     17.5330     -1.86     -1.73
 Chile peso                        668.2     -1.00      6.21
 Colombia peso                  2,896.87     -2.24      9.40
 Peru sol                         3.3349     -0.99      2.37
 Argentina peso (interbank)      14.1950     -0.04     -8.54
 Argentina peso (parallel)         14.61      0.41     -2.33
 (Reporting by Flavia Bohone, writing by Silvio Cascione,
editing by G Crosse)