EMERGING MARKETS-Latam stocks fall on China, N. Korea worries

miércoles 6 de enero de 2016 19:05 GYT

(Updates prices)
    By Bruno Federowski
    SAO PAULO, Jan 6 (Reuters) - Latin American stocks and
currencies fell on Wednesday as investors fretted over economic
weakness in China and a nuclear test by North Korea.
    The People's Bank of China allowed the yuan to fall to a
record low, fueling fears that the world's second-biggest
economy could be weaker than perceived. 
    Data on Wednesday showed activity in China's services sector
expanded at its lowest pace in 17 months in December.
    "Investors are worried about what is going on in China,"
Guide Investimentos analysts wrote in a client note.  
    Traders also avoided risky bets after North Korea said it
successfully tested a miniaturized hydrogen nuclear bomb on
Wednesday. The news added to geopolitical risk, reducing demand
for high-yielding emerging market assets. 
    Latin America's major stock markets all fell. Mexico's peso
 hit a new historic low against the U.S. dollar, while
Brazil's real closed 0.7 pct down against the dollar.
    The Colombian peso dropped, tracking a decline in oil prices
to a new 11-year low as a row between Saudi Arabia and Iran
reduced the chances of coordination to cut output. 
    Latin American stock indexes at 2250 GMT:
 Stock indexes                            daily %    YTD %
                                           change   change
 MSCI Emerging Markets            759.81    -1.13    -4.32
 MSCI LatAm                      1750.97    -1.38    -4.31
 Brazil Bovespa                41773.142    -1.52    -3.64
 Mexico IPC                     41691.19    -0.83    -2.99
 Chile IPSA                      3614.97    -0.31    -1.77
 Chile IGPA                     17866.55    -0.27    -1.57
 Argentina MerVal              11423.329     -0.9    -2.16
 Colombia IGBC                   8352.98     -1.5    -2.27
 Venezuela IBC                  14591.32    -1.06   278.14
 (Additional reporting by Christine Murray; Editing by Nick
Zieminski and Cynthia Osterman)