EMERGING MARKETS-Brazil, Mexico markets fall as oil slump weighs
(Updates Mexican peso losses, adds dollar auction) SAO PAULO, Dec 30 (Reuters) - Stocks and currencies in Brazil and Mexico weakened on Wednesday, as a slide in crude prices to near 11-year lows hit demand for riskier assets. The Brazilian real weakened the most in more than a week in a session marked by thin trading volumes and efforts by banks and brokerages to boost the value of their U.S. dollar-denominated assets, traders said. The real fell 1.8 percent to 3.9480 reais to the dollar, the third-weakest annual close since the currency was introduced in 1994. The real slumped this year as the government failed to assuage concerns over growing budget shortfalls and an escalating standoff with Congress. Concerns over how President Dilma Rousseff's government plans to tackle a mounting fiscal deficit and the impact of a massive debt repayment to state banks made on Wednesday also added to losses, traders noted. Brazil's Bovespa stock index fell 0.7 percent. The index is trading close to its lowest levels since early 2009. The Mexican peso shed more than 0.7 percent to 17.3870 per dollar, heading back toward a record low it hit earlier this month. The country's central bank sold $6 million of $200 million offered to support the currency in an auction and the small amount sold underscored thin liquidity at year-end. A decline in crude prices , which have struggled with concerns over global oversupply, weighed on demand for commodity-linked currencies around the world amid light trading ahead of the New Year's holiday. Latin American currencies at 0000 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 791.47 -1.03 -17.24 MSCI LatAm 1818.09 -2.67 -33.35 Brazil Bovespa 43349.960 -0.7 -13.31 26 Mexico IPC 43012.37 -0.87 -0.31 Chile IPSA 3680.21 0.42 -4.43 Chile IGPA 18151.5 0.4 -3.81 Argentina MerVal 11675.18 -0.19 36.09 Colombia IGBC 8547.34 0.21 -26.54 Venezuela IBC 14588.25 0.5 278.06 (Reporting by Guillermo Parra-Bernal and Michael O'Boyle in Mexico City; Editing by Diane Craft)
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