EMERGING MARKETS-Latam currencies drop with commodities prices
SAO PAULO, Nov 13 (Reuters) - Latin American currencies mostly weakened on Thursday due to falling commodities prices, with Brazil's real pressured further by uncertainty over future economic policy. The MSCI Latin American stock index fell for the third session in four. Prices for commodities, which make up the bulk of Latin American exports, edged lower on Thursday. They are down about 13 percent since the start of July and are currently hovering at their lowest level since June 2012. Most of that has been driven by excess supply and weaker growth in China, a major purchaser of products such as soybeans, iron ore and copper. Data on Thursday showed China's economy lost more momentum in October and is on track to grow at its weakest pace in 24 years. Currency losses were somewhat limited in Latin America, however, by bets that the data would lead the Chinese government to unleash new stimulus measures. "It was a hopeful bet that didn't gain traction" said Pedro Tuesta, an economist with 4Cast. "In general the data is not very supportive." Chile's peso weakened slightly on lower prices for copper, the country's main export, while Mexico's peso edged lower. Brazil's real weakened about 0.4 percent against the dollar, with traders also citing lingering concerns over who recently re-elected President Dilma Rousseff will nominate for finance minister. The currency has swung in recent days on market chatter over potential names, some of which are seen as market-friendly and some of which are not. Brazil's Bovespa stock index moved up slightly, mostly driven by encouraging corporate earnings. Shares of meat producer JBS SA climbed after the company reported a five-fold increase in third-quarter profit from a year earlier. Shares of Lojas Americanas SA jumped about 4 percent after the retailer announced an expansion plan despite a third-quarter profit decline. The Mexican and Chilean benchmark stock indexes were little changed. Peru's central bank will meet later on Thursday, while economic growth data for September is expected on Friday. Key Latin American stock indexes and currencies at 1435 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging 996.08 0 -0.66 Markets MSCI LatAm 2992.14 -0.51 -6.04 Brazil Bovespa 53156.82 0.34 3.20 Mexico IPC 43778.63 0.08 2.46 Chile IPSA 3927.09 0.14 6.16 Chile IGPA 19142.86 0.1 5.02 Argentina MerVal 10101.699 0.29 87.38 Colombia IGBC 13097.99 -0.34 0.20 Peru IGRA 15501.7 0.14 -1.60 Venezuela IBC 2860.1 0 4.51 Currencies daily % YTD % change change Latest Brazil real 2.5726 -0.38 -8.39 Mexico peso 13.5753 -0.15 -4.02 Chile peso 594.8 -0.17 -11.55 Colombia peso 2127.95 -0.23 -9.21 Peru sol 2.933 0.00 -4.77 Argentina peso 8.5100 0.00 -23.71 (interbank) Argentina peso 13.68 -3.87 -26.90 (parallel) (Reporting by Asher Levine; Editing by Meredith Mazzilli)
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