EMERGING MARKETS-Falling commodity prices hurt Chilean peso, Vale shares
RIO DE JANEIRO, Jan 14 (Reuters) - Plunging oil and metal prices on Wednesday hurt the currencies of commodity-exporting countries in Latin America, as well as shares of Brazilian miner Vale and state-run oil company Petrobras. Chile's peso slumped 1.1 percent as prices of copper , the country's main export product, slumped more than 8 percent at one point to their lowest level since July 2009. The Colombian peso was also pressured by another drop in the price of oil, Colombia's biggest export and a main growth driver in the country's $380 billion economy. "Although lower oil prices have a positive impact on global growth, their abrupt fall causes losses to producing countries, companies in the (commodities) sector, and banks exposed to those players," Itau chief economist Ilan Goldfajn wrote in a research note. Shares of Vale SA, the world's largest iron ore producer, fell more than 4 percent, weighing the most on Brazil's benchmark Bovespa index, which posted losses of 0.5 percent. Shares of Petroleo Brasileiro SA dropped more than 2 percent, also hurt by news that police arrested another former executive of the state-run oil company in connection to a growing corruption scandal. Brazilian planemaker Embraer also suffered after it said it burned cash in 2014 as some clients extended payment due dates. Its shares fell more than 5 percent in early trade to an 11-week low. Bucking the trend in Latin American currency markets, the Brazilian real gained 0.3 percent as investors remained optimistic about government efforts to cut expenses this year. Key Latin American stock indexes and currencies at 1425 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging 955.33 -0.48 0.37 Markets MSCI LatAm 2637.44 -0.04 -3.27 Brazil Bovespa 47962.99 -0.16 -4.09 Mexico IPC 0 0 -100.00 Chile IPSA 3770.32 -0.43 -2.09 Chile IGPA 18544.53 -0.35 -1.73 Argentina MerVal 8172.36 -0.65 -4.74 Colombia IGBC 10782.76 0 -7.32 Peru IGRA 14017.29 -0.01 -5.25 Venezuela IBC 3928.7 0 1.81 Currencies daily % YTD % change change Latest Brazil real 2.6249 0.42 1.24 Mexico peso 14.6315 -0.11 0.77 Chile peso 626.3 -1.13 -3.18 Colombia peso 2442.2 -0.02 -2.22 Peru sol 2.99 -0.17 -0.37 Argentina peso 8.5900 0.03 -0.47 (interbank) Argentina peso 13.55 1.11 3.32 (parallel) (Reporting by Walter Brandimarte; Editing by Paul Simao)
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