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EMERGING MARKETS-Latam stocks mixed as earnings season nears
January 12, 2013 / 12:35 AM / 5 years ago

EMERGING MARKETS-Latam stocks mixed as earnings season nears

* China annual consumer inflation speeds in Dec
    * Commodities firms weigh on Brazil's Bovespa
    * Bovespa falls 0.29 pct, Mexico IPC flat

    By Asher Levine and Danielle Assalve
    SAO PAULO, Jan 11 (Reuters) - Latin American stocks were
mixed on Friday as investors geared up for earnings season,
while Brazilian shares fell after data showed China's annual
consumer inflation rate accelerated in December.
    The inflation data narrows the scope for growth-boosting
monetary stimulus in Brazil's top trading partner. 
    Chile's bourse fell for the first session in nine,
while Mexico's IPC index remained flat.
    Commodities producers contributed most to the 0.29 percent
fall in Brazil's benchmark Bovespa stock index after
data on Friday showed China's annual consumer inflation rate hit
a seven-month high in December. 
    "If inflation isn't under control there is less space for
the government to stimulate growth," said Marcelo Varejao, an
analyst with Socopa Corretora in Sao Paulo. "China continues to
be a very big influence on Brazil as steel makers, miners and
oil producers are a huge part of the market."
    China is a key purchaser of Latin American commodities
exports such as iron-ore, soy, copper and petroleum.
    The shares of iron-ore mining company Vale SA,
which counts China as its biggest customer, fell 2.56 percent,
contributing most to the Bovespa's losses, while steelmaker
Companhia Siderurgica Nacional SA lost 0.71 percent.
    The shares of retailer Grupo Pão de Açúcar SA 
lost 3.22 percent, the steepest drop in nearly three months
after the company said on Friday sales growth slowed in the
fourth quarter and that it opened fewer stores than promised
last year. 
    Mexico's IPC index was little changed at 44,888.13
    "Going forward, I don't see anything that could raise the
index aside from decent economic data from the United States or
pleasing local earnings reports," said Cesar Castro, head of
analysis at Capem consultancy. 
    Chile's IPSA index snapped an eight-day rally,
falling 0.49 percent as profit-takers sold off shares of
industrial conglomerate Copec, which fell 2.35 percent.
    Latin America's key stock indexes at 2344 GMT:
 Stock indexes                                      % change
 MSCI LatAm                          3,908.35          -0.36
 Brazil Bovespa                     61,497.43          -0.29
 Mexico IPC                         44,888.13           0.06
 Chile IPSA                          4,438.66          -0.49
 Chile IGPA                         21,676.41          -0.43
 Argentina MerVal                    3,107.66          -0.21
 Colombia IGBC                      14,729.97          -0.07
 Peru IGRA                          21,905.52           0.02
 Venezuela IBC                     473,891.25          -0.02

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