EMERGING MARKETS-Latam markets down on China data, Fed view
SAO PAULO, Sept 28 (Reuters) - Latin American financial markets fell on Monday amid concerns over China's economic growth and the outlook for rising interest rates in the United States. Every major currency in the region weakened against the dollar, while the MSCI Latin American stock index dropped for the seventh session in eight. Data on Monday showed profits earned by Chinese industrial companies declined 8.8 percent in August from a year ago. Signs of economic deceleration in China are problematic for Latin America, which counts on the country as a major purchaser of its raw materials exports. Commodities prices erased the previous session's gains, dragging the Chilean and Colombian pesos about 0.5 percent lower. The region's currencies also saw downward pressure from growing expectations for a U.S. interest rate increase after New York Federal Reserve President William Dudley suggested the U.S. central bank could pull the trigger as soon as October. Brazil's real fluctuated near the four-per-dollar level, seen by most traders as an important psychological threshold. The currency has been hammered by expectations for a worsening economic recession and higher inflation. A central bank poll released before the market open on Monday showed economists expect a contraction of 1 percent in 2016, up from estimates of 0.8 percent a week earlier. In equities markets, Brazil's benchmark Bovespa stock index slumped for the seventh session in a row, driven lower by shares of mining firm Vale SA. Vale counts China as its biggest customer and tends to swing on the outlook for the world's No.2 economy. Mexico's IPC stock index and Chile's IPSA stock index both fell about 1.2 percent. Key Latin American stock indexes and currencies at 1619 GMT: Stock indexes Latest Daily YTD pct pct change change MSCI Emerging Markets 780.97 -1.04 -17.48 MSCI LatAm 1,844.41 -2.58 -30.59 Brazil Bovespa 43,837.71 -2.22 -12.34 Mexico IPC 41,922.42 -1.21 -2.84 Chile IPSA 3,669.6 -1.26 -4.71 Chile IGPA 18,012.66 -1.09 -4.55 Argentina MerVal 9,440.83 -3.65 10.05 Colombia IGBC 9,170.71 -0.94 -21.18 Venezuela IBC 12,121.44 0 214.13 Currencies Daily YTD pct pct change Latest change Brazil real 4.0020 -0.70 -33.60 Mexico peso 17.03 -0.29 -13.42 Chile peso 704 -0.43 -13.86 Colombia peso 3,102.5 -0.97 -23.03 Peru sol 3.2341 -0.37 -7.89 Argentina peso 9.4075 -0.03 -9.12 (interbank) Argentina peso 15.98 0.50 -12.39 (parallel) (Reporting by Bruno Federowski and Asher Levine)
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