EMERGING MARKETS-Latam currencies drop on China turmoil; Mexico peso hits record low

jueves 7 de enero de 2016 18:47 GYT

(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
    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
 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)