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EMERGING MARKETS-Brazil stocks down on China policy worry
October 23, 2013 / 2:26 PM / 4 years ago

EMERGING MARKETS-Brazil stocks down on China policy worry

* Brazil Bovespa down 0.82 pct, Mexico IPC falls 0.44 pct

    SAO PAULO, Oct 23 (Reuters) - Brazilian stocks snapped a
three-day rally on Wednesday on concerns over tighter monetary
policy in China, Brazil's top trading partner.
    Mexico's IPC index fell its most in over a week,
while Chile's bourse dropped for the first session in
    A policy adviser to the People's Bank of China told Reuters
on Tuesday that the authority may tighten cash conditions in the
financial system to address inflation risks, which could also
sap economic growth in a key market for Latin American iron ore,
soybeans, oil and copper. 
    Brazil's benchmark Bovespa stock index erased the
previous session's gains, losing 0.82 percent, as the
Reuters/Jefferies CRB index of the 19 most-traded
agricultural, energy and metals commodities fell its most in
nearly two weeks.
    Shares of iron-ore producer Vale SA sank 1.22
percent, while rival MMX Mineracao e Metalicos SA 
fell 2 percent.
    "There is some worry about China," said Alvaro Bandeira, a
partner with Orama Investimentos in Rio de Janeiro, who also
highlighted what he sees as normal short-term profit-taking
after recent gains. 
    The Bovespa has risen for three months straight and is set
to close October with its biggest monthly gain since Jan, 2012,
aided by a recovery in heavily weighted shares of OGX Petroleo e
Gas Participacoes SA, the oil company controlled by
Brazilian tycoon Eike Batista.
    "Here in Brazil you still have a lot of volatility. We are
seeing a bit more of a recovery in the global economy and the
maintenance of strong liquidity, which is attracting some more
long-term investment in the Bovespa, but it is very initial,"
Bandeira added.
    Lender Banco Bradesco SA fell 1.3 percent after
JPMorgan Securities analysts lowered their recommendation on the
shares to "neutral" from "overweight," saying a recent rally in
the stock has made it less attractive. 
    Mexico's IPC index fell 0.44 percent as shares of
telecommunications firm America Movil, controlled by
billionaire Carlos Slim, slipped 0.72 percent.
    Chile's IPSA index retreated 0.33 percent, with
shares of Banco Santander Chile down 0.5 percent.
    Latin America's key stock indexes at 1340 GMT:
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI LatAm                     3,472.03     -0.96     -7.69
 Brazil Bovespa                55,997.25     -0.82     -8.13
 Mexico IPC                    40,634.81     -0.44     -7.03
 Chile IPSA                     3,881.96     -0.33     -9.75
 Chile IGPA                    19,112.45     -0.26     -9.29
 Argentina MerVal                   0.00         0   -100.00
 Colombia IGBC                 14,302.86     -0.07     -2.81
 Peru IGRA                     16,260.06     -0.16    -21.18
 Venezuela IBC               1,990,723.4         0    322.27

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