EMERGING MARKETS-Bovespa hit by China data, ore prices; America Movil sinks IPC
By Asher Levine SAO PAULO, May 19 (Reuters) - Latin American stocks dropped on Monday as a decline in iron ore prices hammered shares of Brazilian miner Vale while America Movil drove losses in Mexico's bourse after AT&T said it would sell its stake in the Mexican telecommunications firm. The broader MSCI Latin American stock index nearly erased the previous session's gains though most of the region's currencies strengthened slightly against the dollar. Data from China on Sunday showed annual growth in average new home prices slowed to an 11-month low in April, raising concerns over an economic slowdown in the key consumer of Latin American commodities, including copper, soybeans and iron ore. That caution should remain in place until China's government announces stimulus measures, analysts from BB Investimentos wrote on Monday, citing what they see as the "inevitable continuation of an economic slowdown" in the country. Preferred shares of Vale SA, which counts China as its biggest customer, sank by their most in three weeks as spot iron ore for immediate delivery to China .IO62-CNI=SI dropped to its lowest since September 2012. Steelmakers and commodities producers also fell, driving Brazil's Bovespa stock index to a 1 percent loss. Mexico's IPC stock index fell about 0.6 percent as shares of telecommunications firm America Movil posted their biggest one-day drop in nearly two months. The fall came after AT&T said it would sell its roughly 8 percent stake in the Mexican firm and withdraw its board members in order to help it gain regulatory approval for its purchase of DirecTV. Latin American currencies were mostly stronger against the dollar, though moves were muted. Chile's peso posted the biggest gain in the region, strengthening 0.46 percent to 548.2 per dollar. The peso, which has risen about 3.4 percent over the past 10 sessions, was bolstered by stronger than expected economic growth data on Monday and a nearly 1 percent gain in the price of copper, the country's main export. Key Latin American stock indexes and currencies at 1603 GMT: Stock indexes Latest Daily YTD pct pct change change MSCI Emerging Markets 1,035.95 0.39 2.92 MSCI LatAm 3,370.45 -0.51 5.84 Brazil Bovespa 53,432.83 -1.01 3.74 Mexico IPC 41,670.11 -0.55 -2.47 Chile IPSA 3,942.34 -0.68 6.57 Chile IGPA 19,285.5 -0.5 5.81 Argentina MerVal 6,987.22 1.57 29.61 Colombia IGBC 13,648.11 -0.1 4.41 Peru IGRA 15,724.58 -0.17 -0.18 Venezuela IBC 2,141.44 -2.03 -21.75 Currencies Daily YTD pct pct change Latest change Brazil real 2.2040 0.39 6.93 Mexico peso 12.8935 0.06 1.06 Chile peso 548.2 0.46 -4.03 Colombia peso 1,920.69 0.25 0.59 Peru sol 2.786 0.11 0.25 Argentina peso (interbank) 8.0675 -0.15 -19.52 Argentina peso (parallel) 11.12 0.09 -10.07 (Additional reporting by Priscila Jordao)
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