June 11, 2013 / 10:57 PM / 5 years ago

EMERGING MARKETS-Latam stocks nosedive amid global selloff

* BOJ holds off on new stimulus, end of Fed asset-buying
    * Commodities shares lead selloff in Latam stocks
    * Bovespa falls 3.01 pct, Mexico IPC down 2.04 pct

    By Asher Levine and Danielle Assalve
    SAO PAULO, June 11 (Reuters) - Latin American stocks dropped
on Tuesday as part of a global equities selloff as investors
worried that the world's central banks might slow the monetary
stimulus that has boosted the region's emerging markets.
    Mexico's IPC index posted its second biggest one-day
loss this year, falling 2 percent to 39,890.24 points, while
Brazil's Bovespa fell 3 percent to its lowest since
    The Bank of Japan refrained from adding more monetary
stimulus at the end of its two-day meeting on Tuesday, sparking
investor concerns that the Federal Reserve may take similar
steps in the United States.  
   The Fed's monthly bond purchase program provides a steady
source of dollars that investors seeking higher returns often
put to work in emerging markets.
    * Brazil's benchmark Bovespa stock index dropped
3.01 percent, closing below 50,000 points - its lowest level
since October 2011. 
    * A technical indicator known as the relative strength index
fell to its most "oversold" level in more than a year,
indicating stocks may be due to rebound. Analysts expected
strong technical support near 48,000 points.
    * Shares of commodities exporters, which tend to attract
foreign investors looking for exposure to Brazilian stocks, fell
broadly. Shares of state-run oil company Petroleo Brasileiro SA
, known as Petrobras, fell 1.85 percent, while mining
firm Vale SA dropped 2.87 percent.
    * Mexico's IPC index dropped for the second session
in three after data on Tuesday showed industrial production in
April fell far short of expectations. 
    * Shares of mining firm Grupo Mexico lost 4.33
 percent while banking group Banorte lost 3.91
percent, contributing the most to the index's decline. Italian
insurer Generali SpA said on Tuesday it sold its stake
in two Banorte assets back to the bank. 
    * In Chile, shares of Latam Airlines Group fell
0.68 percent after the company announced it plans to spend
around $11 billion to boost its fleet. Chile's
bourse tumbled to its lowest level since July last year.
    Latin America's key stock indexes at 2211 GMT:
 Stock indexes                           daily %  year-to-da
                      Latest              change        te %
 MSCI LatAm                 3,295.86       -1.96      -13.22
 Brazil Bovespa            49,769.93       -3.01      -18.35
 Mexico IPC                39,890.24       -2.04       -8.73
 Chile IPSA                 3,962.95       -1.68       -7.87
 Chile IGPA                19,741.03       -1.46       -6.31
 Argentina MerVal           3,342.63       -2.08       17.11
 Colombia IGBC             13,252.89       -0.85        4.64
 Peru IGRA                 15,713.69       -2.68      -23.83
 Venezuela IBC            851,619.13        1.16       80.64

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