EMERGING MARKETS-Latam markets sink further on Greece, China jitters
SAO PAULO, May 28 (Reuters) - Latin American currencies and stocks extended their recent slump on Thursday as concerns over Greece's debt crisis and a sharp tumble in Chinese shares sapped risk appetite and fueled demand for the dollar. Brazil's real posted the sharpest loss among the region's currencies, while the MSCI Latin American stock index fell for a third straight day. Greece has yet to conclude a deal that would help avert a debt default, European officials said on Wednesday, adding to investor concern over the economic impact should a default occur. Additionally, stocks in China, one of the principal purchasers of Latin American commodities, tumbled on Thursday, further sparking a move toward safe-haven assets such as the U.S. dollar. The dollar's recent strength has been driven by expectations for an interest rate hike in the world's largest economy as economic indicators there strengthen. "It seems like we're seeing a global shift in the dollar due to the normalization of U.S. monetary policy," said Luciano Rostagno, chief strategist at Banco Mizuho in Sao Paulo. "The market is beginning to think that it's not a temporary thing." The Brazilian real dropped to about 3.17 per dollar from 3.14 in the previous session. The Mexican and Colombian pesos both weakened about 0.6 percent. In stock markets, Brazil's Bovespa index erased the previous session's gains as shares of iron-ore mining firm Vale SA, which counts China as its biggest customer, dropped nearly 3 percent. Key Latin American stock indexes and currencies at 1604 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 1007.99 -1.09 6.56 MSCI LatAm 2517.52 -0.78 -6.98 Brazil Bovespa 53559.27 -1.25 7.10 Mexico IPC 44599.31 -0.19 3.37 Chile IPSA 4022.82 -0.34 4.46 Chile IGPA 19568.47 -0.24 3.70 Argentina MerVal 10944 0.17 27.57 Colombia IGBC 10182.65 -0.33 -12.48 Peru IGRA - - - Venezuela IBC 10920.61 0.67 183.01 Currencies daily % YTD % change change Latest Brazil real 3.1761 -1.01 -16.33 Mexico peso 15.3862 -0.63 -4.17 Chile peso 617.7 -0.28 -1.83 Colombia peso 2549.5 -0.59 -6.33 Peru sol 3.1581 -0.13 -5.67 Argentina peso 8.9850 -0.03 -4.84 (interbank) Argentina peso 12.6 0.95 11.11 (parallel) (Reporting by Bruno Federowski; Editing by Peter Galloway)
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