January 9, 2014 / 2:46 PM / 4 years ago

EMERGING MARKETS-Brazil stocks drop after China data surprise

SAO PAULO, Jan 9 (Reuters) - Brazilian stocks dropped on
Thursday to the lowest in nearly a month, dragged down by mining
and steelmaking companies after a slower-than-expected increase
in Chinese consumer prices.
    Brazil's Bovespa slipped 1.3 percent to 49,936.28.
The Bovespa was one of the world's worst performing indexes in
2013, a year of disappointing economic growth in Brazil.
    "Inflation came in lower-than-expected in China, which means
a slowdown in consumption. Metal shares are down in Europe,
which impacts steelmakers and metal producers here," said Luiz
Roberto Monteiro, trader at Renascença DTVM.
    China's annual consumer inflation slowed more sharply than
expected to a seven-month low of 2.5 percent in December. Brazil
is China's main source of iron ore. 
    Shares of Brazilian global mining company Vale SA 
led the Ibovespa index down with a decline of 1.5 percent to
30.60 reais. Steelmaker Gerdau fell 0.78 percent, to
17.86 reais.    
    * Shares of Brazilian food processor BRF SA, the
world's largest poultry producer, dropped 2.37 percent to 44.81
reais after Citigroup Global Markets Inc trimmed the price
target for its U.S.-traded shares to $25 from a prior
$29 on lower earnings estimates for this year. 
    * Óleo e Gás Participações SA, Brazilian entrepreneur Eike
Batista's oil company, said on Thursday it paid off part of the
debt related to the development costs for two offshore oil
fields. Its shares rose 8 percent to 0.27 reais. 
    * Shares of América Latina Logística SA, Brazil's
largest rail operator, jumped 7.52 percent to 6.72 reais after
local newspaper Valor Economico reported the company was
considering resuming merger talks with logistics operator Rumo
    * Shares of Braskem SA, Latin America's largest
petrochemical company, dropped 1.15 percent to 19.80 reais after
it sold a water treatment plant in the southern state of Rio
Grande do Sul to Odebrecht Ambiental.

     Latin America's key stock indexes at 1443 GMT:
 Stock indexes                            daily %   YTD %
                                 Latest   change    change
 MSCI LatAm                   3,067.67    -1.09     -3.1
 Brazil Bovespa               49,949.97   -1.24     -3.02
 Mexico IPC                   0.00        0         -100.00
 Chile IPSA                   3,693.20    0.09      -0.16
 Chile IGPA                   18,223.86   0.11      -0.02
 Argentina MerVal             5,387.65    -0.02     -0.06
 Colombia IGBC                12,791.95   0.08      -2.14
 Peru IGRA                    15,986.67   0.19      1.48
0 : 0
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