June 21, 2018 / 4:23 PM / 5 months ago

EMERGING MARKETS-Brazil stocks fall on profit-taking; Argentine shares soar

    By Bruno Federowski
    BRASILIA, June 21 (Reuters) - Brazilian stocks fell on
Thursday as traders booked profits from a two-day string of
gains in the wake of growing trade tensions between the United
States and China, while Argentine shares soared.
    The benchmark Bovespa stock index fell 1.4 percent,
paring back a 3.3 percent increase in the two previous days, its
best such stretch since May.
    Improving demand for emerging market assets worldwide had
helped to support the index earlier this week, but appetite for
risky assets wavered on Thursday after China's commerce ministry
accused the United States of being "capricious" over bilateral
trade issues.
    On Monday, President Donald Trump threatened to hit $200
billion of Chinese imports with 10 percent tariffs if Beijing
retaliates against a previous announcement to target $50 billion
in imports.
    Blue-chip stocks, such as state-controlled oil company
Petróleo Berasileiro SA, lender Itaú Unibanco SA
 and miner Vale SA, subtracted the most
points from the Bovespa index.
    Argentine stocks, however, rallied after index provider MSCI
upgraded the country to its emerging markets index a day
earlier, a respite from months of dismal economic news for
market-friendly President Mauricio Macri in recent months.

    Other Latin American stock markets, as well as currencies,
were mostly lower as traders refrained from making large bets
amid wariness over the global trade outlook.
    Currencies from Brazil, Mexico and Chile
 slipped between 0.1 and 0.3 percent, while falling oil
prices drove the Colombian peso 1 percent down.
    Key Latin American stock indexes and currencies at 1605 GMT:
 Stock indexes                               daily %     YTD %
                                              change    change
                                  Latest              
 MSCI Emerging Markets              1082.08    -1.02     -5.63
 MSCI LatAm                         2427.91    -1.56    -12.79
 Brazil Bovespa                    71094.62    -1.43     -6.95
 Mexico IPC                        46616.91     -0.3     -5.55
 Chile IPSA                         5425.42     0.15     -2.50
 Chile IGPA                        27415.33     0.12     -2.02
 Argentina MerVal                  31206.25     7.17      3.79
 Colombia IGBC                     12079.19     0.08      6.23
                                                              
 Currencies                                  daily %     YTD %
                                              change    change
                                     Latest           
 Brazil real                         3.7930    -0.30    -12.65
 Mexico peso                        20.3715    -0.11     -3.30
                                                      
 Chile peso                           641.1    -0.19     -4.13
 Colombia peso                      2952.24    -1.01      1.01
 Peru sol                             3.277     0.03     -1.22
 Argentina peso (interbank)         27.4300     1.35    -32.19
                                                      
 Argentina peso (parallel)            27.85     1.80    -30.95
                                                      
 
 (Reporting by Bruno Federowski
Editing by Chizu Nomiyama)
  
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