EMERGING MARKETS-Latam currencies rebound after sharp losses amid China concerns
(Updates prices) SAO PAULO, Jan 5 (Reuters) - Brazil and Chile's currencies on Tuesday bounced back from steep losses from the prior session after a sharp slump in China's equities roiled markets around the world. Brazil's real gained 1 percent to 3.9911 per dollar, firming back past the key 4-per-dollar mark after falling sharply the previous day. China is Brazil's top trading partner. Chile's peso gained 0.56 percent, helped by a rebound in the price of copper, the country's main export. Analysts, however, said gains in Brazil could be short-lived. Investors are worried about the ability of Brazil's government to steer Latin America's largest economy out of its worst recession in at least 25 years. China's central bank injected nearly $20 billion into markets on Tuesday, which brought some relief, but analysts said it is likely not enough to eliminate concerns. Brazilian stocks rebounded, rising 0.66 percent after falling for four consecutive days. Continued gains are not expected due to the absence of good domestic news and concern over China, analysts said. "The normal movement would be a continual downward trend," said Raphael Figueredo of Clear Corretora brokerage. Latin American currencies at 2100 GMT: Latin American market prices from Reuters Stock indexes Latest Daily pct change MSCI Emerging Markets 768.19 0.05 MSCI LatAm 1,778.94 0.88 Brazil Bovespa 42,419.32 0.66 Mexico IPC 42,041.68 -0.17 Chile IPSA 3,626.13 0.14 Chile IGPA 17,915.73 0.09 Argentina MerVal 11,527.22 0.08 Colombia IGBC 8,479.8 0.94 Venezuela IBC 14,748.38 1.1 Currencies Latest Daily pct change Brazil real 3.9911 1.02 Mexico peso 17.3408 -0.21 Chile peso 713.8 0.56 Colombia peso 3,209.4 0.28 Peru sol 3.4122 0.29 Argentina peso (interbank) 13.6300 -3.15 Argentina peso (parallel) 14.24 -0.49 (Reporting by Flavia Bohone and Patricia Jordao; Editing by Nick Zieminski and Sandra Maler)
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