EMERGING MARKETS-Latam stocks, currencies mostly slip on Fed rate hike worries
By Bruno Federowski SAO PAULO, Sept 12 (Reuters) - Most Latin American stocks and currencies fell on Monday as concerns over a possible U.S. interest rate increase sapped appetite for emerging market assets. Boston Federal Reserve President Eric Rosengren said on Friday the U.S. central bank increasingly faces risks if it waits too long to tighten policy. His remarks rekindled bets that the Fed could raise rates this year despite a recent bout of weak U.S. economic figures. Traders now await a speech by Fed Board Governor Lael Brainard on Monday for further hints over the Fed's intentions. The Mexican peso weakened as much as 1.4 percent but later pared losses as prices of crude oil turned higher. The Brazilian real slipped 0.1 percent. Most stock markets in the region also dropped, but Brazil's benchmark Bovespa stock index rose 0.3 percent. Common shares of Petróleo Brasileiro SA provided the biggest boost to the index after the state-controlled oil company's output hit a record high in August. Shares of Vale SA also rose, offering support to the benchmark index. JPMorgan analysts improved their recommendation for U.S.-listed stocks in the miner to "overweight" and increased their price target to $7 from $5. Shares of infrastructure operators were mixed ahead of an expected government announcement of a new plan of concessions and privatizations. Local newspaper Folha de S.Paulo reported on Monday that the government plans to seize and relaunch some airport and road concessions that are well behind schedule on those projects. Analysts with Bradesco BBI said that if that proves to be true, operators CCR SA and Ecorodovias Infraestrutura e Logística SA could participate in the auctions. Shares of both companies rose on Tuesday, while stocks in Rumo Logística Operadora Multimodal SA dropped 1.9 percent. Key Latin American stock indexes and currencies at 1500 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 887.95 -2.35 14.5 MSCI LatAm 2356.53 -1.11 30.23 Brazil Bovespa 58181.28 0.31 34.21 Mexico IPC 46066.25 -0.85 7.19 Chile IPSA 4057.93 -0.85 10.26 Chile IGPA 20187.13 -0.79 11.21 Argentina MerVal 15909.31 -0.41 36.27 Colombia IGBC 10261.65 -0.61 20.06 Currencies daily % YTD % change change Latest Brazil real 3.2856 -0.23 20.13 Mexico peso 19.1250 -1.07 -9.91 Chile peso 673.2 -0.40 5.42 Colombia peso 2936.47 -0.63 7.93 Peru sol 3.403 -0.26 0.32 Argentina peso (interbank) 14.9950 0.07 -13.42 Argentina peso (parallel) 15.27 0.39 -6.55 (Reporting by Bruno Federowski; Editing by James Dalgleish)
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