EMERGING MARKETS-Latin American stocks drop as commodities sag
SAO PAULO, April 25 (Reuters) - Latin American stocks fell on Monday at the start of Brazil's corporate earnings seasons, dragged down by lower commodities prices ahead of central bank meetings in the United States and Japan this week. Brazil's Bovespa stock index slipped more than 1 percent, underperforming the broader MSCI Latin American stock index as shares of miner Vale SA fell more than 5 percent, hit by a drop in iron ore prices. Shares of steelmaker Usinas Siderurgicas de Minas Gerais SA sank more than 7 percent after it posted its seventh quarterly loss in a row. Car rental company Localiza and retailer Lojas Renner were due to publish results later in the day. World stocks slipped at the start of the week, adding to signs that a three-month rally in stocks was cooling. Investors waited for a Federal Reserve rate decision on Wednesday and a Bank of Japan policy update on Thursday. Latin American currencies also fell, with the exception of the Brazilian real, which traded slightly stronger as the central bank refrained from intervening. "Markets are waiting for a possible central bank auction today, but that will probably happen only if the dollar weakens to 3.53 reais or less," said Jefferson Luiz Rugik, a currency trader at local brokerage Correparti. The Brazilian central bank has stepped up its dollar purchases in domestic futures markets, using instruments known as reverse currency swaps, after the real surged on the growing chances of impeachment of unpopular President Dilma Rousseff. Key Latin American stock indexes and currencies at 1435 GMT: Stock indexes daily % YTD % change Latest change MSCI Emerging 838.30 -0.82 6.43 Markets MSCI LatAm 2184.88 -0.91 20.51 Brazil Bovespa 51980.53 -1.75 19.91 Mexico IPC 45521.52 -0.2 5.92 Chile IPSA 3953.04 -0.48 7.41 Chile IGPA 19461.36 -0.28 7.22 Argentina MerVal 13637.66 -1.99 16.81 Colombia IGBC 10076.17 -0.7 17.89 Venezuela IBC 15965.02 -0.04 9.44 Currencies daily % YTD % change change Latest Brazil real 3.5595 0.29 10.89 Mexico peso 17.6115 -0.86 -2.17 Chile peso 668.5 -0.01 6.16 Colombia peso 2960.95 -0.48 7.04 Peru sol 3.2811 -0.37 4.05 Argentina peso 14.3400 -0.28 -9.47 (interbank) Argentina peso 14.83 0.34 -3.78 (parallel) (Reporting by Flavia Bohone and Paula Laier; Writing by Silvio Cascione; Editing by Meredith Mazzilli)
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