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Mercados

EMERGING MARKETS-Latam stocks slide on virus fears, Brazil's real at near two-month low

    * Brazil's real slips on rate outlook, current account data
    * China virus stokes fears of economic impact
    * Chilean peso tracks decline in copper prices

    By Shreyashi Sanyal
    Jan 27 (Reuters) - Latin American stocks slid on Monday as
investors fretted about the potential economic damage of China's
coronavirus outbreak, while Brazil's real fell to its lowest
level in nearly two months.
    Risk appetite around the globe was battered as investors
fled to the safety of gold, the yen and Treasury notes, as the
death toll from the virus rose to 81 and the virus spread to
more than 10 countries.
    MSCI's index for Latin American stocks
tumbled 2.8%, putting it on track for its worst day in more than
five months. 
    "The clear trigger is the 'risk off' fears, we've seen
selling in equities, buying in safe havens, the news story is
certainly about the coronavirus," said Guy Lebas, chief fixed
income strategist at Janney Montgomery Scott in Philadelphia.
    Brazil's real led currencies in the region lower,
with a 0.8% fall, as it hit its lowest level since early
December. 
    The Brazilian central bank's benchmark interest rate is
expected to fall to 4.25% by year end, the bank's latest weekly
survey of economists showed, while inflation forecasts declined
for the fourth week in a row to a new low.
    Also adding strain to the currency was data which showed  
Brazil's balance of payments position with the rest of the world
deteriorated last year, as a steep decline in the country's
trade surplus contributed to the widest current account deficit
in four years.
    The Chilean peso weakened 1.4% against the dollar,
tracking a lower trend in prices of copper, the country's main
export. The red metal was on track for its ninth consecutive
session of falls, the longest losing streak in six years.

    A sharp move downward in crude prices hit the Colombian peso
, which weakened to its lowest level in about one and a
half months. 
    Brazil's Bovespa index was knocked off record high
levels after shedding 2.3% and eyed its biggest one-day
percentage fall since early October.        
    
    
    Key Latin American stock indexes and currencies at 1438 GMT:
    Stock indexes             Latest    Daily %
                                         change
 MSCI Emerging Markets         1102.15     -1.54
                                        
 MSCI LatAm                    2811.46     -2.84
                                        
 Brazil Bovespa              115616.26     -2.33
                                        
 Mexico IPC                       0.00         0
                                        
 Chile IPSA                    4571.20      -1.5
                                        
 Argentina MerVal             38803.81    -2.791
                                        
 Colombia COLCAP               1642.29     -0.34
                                        
                                                
       Currencies             Latest    Daily %
                                         change
 Brazil real                    4.2167     -0.77
                                        
 Mexico peso                   18.9130     -0.65
                                        
 Chile peso                     789.15     -1.54
                                        
 Colombia peso                 3398.34     -1.04
 Peru sol                        3.339     -0.48
                                        
 Argentina peso                60.1100     -0.02
 (interbank)                            
                                        
 
 (Reporting by Shreyashi Sanyal in Bengaluru; Additional
reporting by Karen Brettell in New York; Editing by Chizu
Nomiyama)
  
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