August 13, 2018 / 3:51 PM / 3 months ago

EMERGING MARKETS-Argentine peso hits new low, Turkey's crisis rattles LatAm

    SAO PAULO/BUENOS AIRES, Aug 13 (Reuters) - Argentina's peso
hit an all-time low on Monday, amid a broader currency sell-off
in Latin America as the fallout from the  Turkish lira's plunge
continued to rattle emerging markets.
    Turkey's lira pulled back from a record low of
7.24 to the dollar on Monday after the central bank pledged to
provide liquidity, but it remained under selling pressure and is
driving global demand for safe currencies such as the dollar and
Swiss franc.
    Investors have grown increasingly concerned about President
Tayyip Erdogan's growing control over the economy and a
deepening diplomatic rift with the United States, with those
concerns snowballing into a market panic last week.
    By far the biggest loser was Argentina's peso currency
, which fell over 2 percent in mid-day trade to an
all-time low, as the Turkey contagion added to market worries
about a far-reaching graft scandal.
    "With the evolution of the Turkey situation, the start of
the week for Argentine assets has been laid out, with corruption
scandals involving businessmen and political officials adding
on" to the lira's slide, consultancy SBS wrote in a note to
clients.
    Equities markets were not nearly as spooked by the Turkey
situation, with several indexes slightly in the black on Monday.
    Brazil's benchmark Bovespa index, was up 0.56
percent in mid-day trade. Traders said they saw a buying
opportunity after the index fell over 5 percent last week, and 
a solid day on Wall Street helped lift spirits. Heavily
weighted iron ore miner Vale SA accounted for around
30 percent of the rise, as steel futures rose on supply concerns
in China.
    
Key Latin American stock indexes and currencies at 1515 GMT:
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1042.56     -1.86     -8.29
                                                  
 MSCI LatAm                    2544.33      -0.8     -9.31
                                                  
 Brazil Bovespa               76983.55      0.61      0.76
                                                  
 Mexico IPC                   48699.39      0.65     -1.33
                                                  
 Argentina MerVal             26611.95     -0.91    -11.49
                                                  
 Colombia IGBC                12025.81      0.02      5.76
                                                  
 Venezuela IBC               111686.02     -0.08   8741.94
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.8952     -0.84    -14.94
                                                  
 Mexico peso                   19.1520     -1.30      2.86
                                                  
 Chile peso                      658.3     -0.76     -6.63
                                                  
 Colombia peso                 2965.55     -0.79      0.55
 Peru sol                        3.286     -0.18     -1.49
                                                  
 Argentina peso                29.9000     -2.17    -37.79
 (interbank)                                      
                                                  
 Argentina peso                   29.5     -1.69    -34.81
 (parallel)                                       
                                                  
 

 (Reporting by Gram Slattery and Walter Bianchi; Additional
reporting by Paula Arend Laier
Editing by Susan Thomas)
  
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