EMERGING MARKETS-Brazil's Vale advances on China rates; currencies slide

lunes 11 de mayo de 2015 10:57 GYT

SAO PAULO, May 11 (Reuters) - Shares of Brazilian iron-ore
producer Vale SA led the Bovespa stock index higher
on Monday after top customer China announced it would lower
interest rates to boost economic growth.
    Brazil's real , however, weakened alongside
other Latin American currencies on concern over Greek debt
    China cut interest rates for the third time in six months on
Sunday to help stoke a domestic economy that is headed for its
worst year in a quarter of a century. 
    China is Brazil's top trading partner and a major purchaser
of Latin American commodity exports such as copper, soybean,
petroleum and iron ore.
    Shares of Vale, which counts China as its No. 1 customer,
rose over 4 percent, ending a three-day slump. Brazilian
steelmakers also advanced, though consumer goods companies
    A weekly central bank poll released before market open on
Monday showed analysts expect the Brazilian economy to contract
1.2 percent this year, worse than the 1.18 percent contraction
forecast a week earlier.
    The Brazilian real nearly erased Friday's gains against the
dollar, weakening over 1 percent and crossing back above the 3
per dollar level.
    Traders said the real, like most Latin American currencies,
was responding to global dollar strength sparked by concerns
over the outcome of Greek debt negotiations.
    Greece, which must repay a 750 million euro ($837.30
million) loan to the International Monetary Fund on Tuesday,
faces the risk of defaulting on debt repayments and being forced
out of the euro zone. Investors often sell riskier assets in
favor of the safe-haven dollar in times of concern or
uncertainty over global economic health. 
    ($1 = 0.8957 euros)
    Key Latin American stock indexes and currencies at 1451 GMT:

 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1036.12      0.11      8.22
 MSCI LatAm                    2733.79     -0.42      0.64
 Brazil Bovespa               57416.13      0.47     14.82
 Mexico IPC                   45020.25     -0.23      4.34
 Chile IPSA                    4125.58      0.48      7.13
 Chile IGPA                   19983.05      0.49      5.90
 Argentina MerVal             12102.27     -0.84     41.07
 Colombia IGBC                10669.27      0.32     -8.30
 Peru IGRA                 --           --           --
 Venezuela IBC                    5692     -0.07    108.00
 Currencies                              daily %     YTD %
                                          change    change
 Brazil real                    3.0178     -1.22    -21.90
 Mexico peso                   15.2189     -0.67    -14.38
 Chile peso                     604.25      0.00    -12.93
 Colombia peso                  2374.7     -0.84    -18.64
 Peru sol                       3.1531     -0.25    -11.42
 Argentina peso                 8.9250      0.00    -27.25
 Argentina peso                  12.52      0.40    -20.13

 (Reporting by Asher Levine Editing by W Simon)