EMERGING MARKETS-Mexico peso sinks to record low, Brazil stocks slump
(Adds IIF data) By Bruno Federowski SAO PAULO, Jan 20 (Reuters) - Mexico's peso tumbled to a record low on Wednesday and Brazil's stock market sank to its lowest level since early 2009 as a slump in oil prices drove a further sell-off of riskier assets around the globe. Growing concerns about global oversupply due to the lifting of international sanctions on Iran drove U.S. crude prices to their lowest since 2003, sparking big losses on Wall Street. Chinese stocks also fell as lower energy prices offset expectations that economic stimulus in the world's top consumer of commodities could stabilize this year's rout in emerging market assets. The Mexican peso set an all-time low of 18.71 per dollar but pared losses. The peso has shed nearly 7 percent in January, on track to post its worst month since May 2012, amid an unrelenting dive in riskier assets. Analysts expect Mexico's central bank to bolster its program of dollar auctions, which is set to expire at the end of the month, in a bid to support the peso. The Washington-based Institute of International Finance, which follows the developing world's investment flows, predicted emerging market stocks are headed for another year of outflows as global growth slows, with Brazil one of the most vulnerable countries. The Brazilian real dropped 1.1 percent to a four-month low, and the country's Bovespa stock index fell to its lowest since 2009. Yields paid on short-term interest rate futures contracts fell for the second straight day ahead of a central bank interest rate decision after the market close. Traders continued to unwind bets that the bank would increase its benchmark rate sharply to fight stubbornly high inflation, despite a deepening recession. Latin American stock indexes and currencies at 2100 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 694.36 -2.8 -10.04 MSCI LatAm 1588.43 -1.78 -11.62 Brazil Bovespa 37645.48 -1.08 -13.16 Mexico IPC 40844.41 -0.09 -5.22 Chile IPSA 3455.74 -0.68 -6.10 Chile IGPA 17160.27 -0.63 -5.46 Argentina MerVal 9401.06 -4.08 -19.48 Colombia IGBC 8074.00 0.65 -5.54 Venezuela IBC 14473.05 0.05 -0.79 Currencies daily % YTD % change change Latest Brazil real 4.1025 -1.21 -3.79 Mexico peso 18.4920 -1.15 -6.83 Chile peso 729 -0.52 -2.65 Colombia peso 3392.4 -2.47 -6.58 Peru sol 3.4451 -0.23 -0.90 Argentina peso (interbank) 13.4800 -0.37 -3.69 Argentina peso (parallel) 14.3 0.49 -0.21 (Additional reporting by Anna Yukhananov and Michael O'Boyle in Mexico City; Editing by Lisa Von Ahn and Phil Berlowitz)
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