* 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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