October 13, 2016 / 1:47 PM / a year ago

EMERGING MARKETS-Latam currencies slip on China data, Fed minutes

By Bruno Federowski
    SAO PAULO, Oct 13 (Reuters) - Most Latin American currencies
weakened in early Thursday trading on weak Chinese trade data
and bets on a December U.S. interest rate increase.
    China's September exports fell 10 percent from a year
earlier, far worse than expected, while imports dropped
    Persistent concerns over economic weakness in the world's
biggest commodities consumer have weighed on demand for assets
in regions exporting raw materials, such as Latin America.
    The Chilean peso  fell 0.5 percent, tracking
a decline in prices of copper, the country's main export. The
Mexican peso retreated 0.6 percent.
    Brazil's benchmark Bovespa stock index fell 1.0
percent after a local holiday kept it closed on Wednesday, when
the minutes of the U.S. Federal Reserve's last policy meeting
were published.
    According to the document, several rate-setting policymakers
at the Fed judged a rate hike would be warranted "relatively
soon" if the U.S. economy continued to strengthen, though doubts
about inflation remained. 
    Higher U.S. interest rates could reduce the allure of
high-yielding assets in emerging markets.
    Losses were widespread on the Brazilian stock exchange, with
shares of miners and steelmakers among the biggest decliners as
prices of commodities fell.
    Earlier on Thursday, the Turkish lira slid to a record low,
the South African rand lost over one percent and emerging
equities tumbled to three-week lows after the Chinese trade data
and Fed minutes. 
    Key Latin American stock indexes and currencies at 1333 GMT:
 Stock indexes                             daily %     YTD %
                                Latest      change    change
 MSCI Emerging Markets             890.33    -1.37     13.68
 MSCI LatAm                       2455.19    -1.12     35.69
 Brazil Bovespa               60385.45431    -1.04     39.30
 Mexico IPC                      47730.75    -0.38     11.06
 Chile IPSA                          4099    -0.32     11.38
 Chile IGPA                       20541.9    -0.28     13.17
 Colombia IGBC                     9985.6    -0.23     16.83
 Venezuela IBC                   13505.76     0.12    250.00
 Currencies                                daily %     YTD %
                                            change    change
 Brazil real                       3.2067    -0.40    -17.13
 Mexico peso                      19.0212    -0.57    -22.49
 Chile peso                         670.1    -0.49     -9.51
 Colombia peso                    2921.47    -0.62    -18.26
 Peru sol                           3.407    -0.21    -12.56
 Argentina peso (interbank)       15.0400     0.27    -43.15
 Argentina peso (parallel)          15.48     0.71     -9.56
 (Reporting by Bruno Federowski; Editing by Nick Zieminski)
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