EMERGING MARKETS-Latam currencies drop on China turmoil; Mexico peso hits record low
(Updates prices to late afternoon) By Bruno Federowski SAO PAULO, Jan 7 (Reuters) - Latin American currencies weakened on Thursday after China's government let the yuan decline further, triggering fears that the world's largest consumer of commodities might experience a steeper slowdown. The Mexican peso set an all-time low of 17.85 to the dollar, while the Chilean peso dropped to its lowest against the dollar since 2003 as copper prices slipped. "Chinese authorities are baffled and, with the lack of transparency, markets tend to overreact to any sign" of weakness, said economist Pedro Tuesta of 4Cast Inc in Washington. The Brazilian real also retreated and data on Thursday showed Brazil's industrial output dropped 2.4 percent in November, its sharpest monthly decline since December 2013. A Reuters poll earlier on Thursday showed analysts expect currencies in Latin America to weaken further in 2016. Latin American stock indexes at 2230 GMT: Stock indexes Latest Daily YTD pct pct change change MSCI Emerging Markets 738.86 -2.76 -6.96 MSCI LatAm 1,696.06 -3.14 -7.31 Brazil Bovespa 40,694.72 -2.58 -6.13 Mexico IPC 40,661.57 -2.47 -5.39 Chile IPSA 3,557.77 -1.58 -3.33 Chile IGPA 17,624.77 -1.35 -2.90 Argentina MerVal 11,390.369 -0.28 -2.44 Colombia IGBC 8,159.16 -2.32 -4.54 (Reporting by Bruno Federowski)
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