August 15, 2018 / 8:55 PM / 3 months ago

EMERGING MARKETS-Mexico peso, LatAm stocks hit by Turkey jitters

 (Updates prices)
    SAO PAULO, Aug 15 (Reuters) - Mexico's peso sank by the most
in over two months on Wednesday as Latin American equities and
currencies were rattled by jitters over Turkey that led to a
global sell-off in emerging market assets and commodities.
    Mexico's peso fell about 1.6 percent, its
biggest intraday fall since early June and was on track to close
at its weakest in five weeks.
    The peso had strengthened significantly in the last two
months, helped by perceived progress in North American Free
Trade Agreement negotiations. Now negotiators are trying to meet
an August goal of wrapping up U.S.-Mexico talks.
    Continued volatility in the lira pushed
risk-averse traders toward the dollar, prompting a shakeout in
riskier assets.
    The widely watched MSCI Emerging Markets Equity Index
 entered a technical bear market after falling some 20
percent since late January, while the MSCI emerging market
currency index hit a nearly 15-month low.

    In Latin American equities markets, Brazil's benchmark
Bovespa index fell 1.8 percent, as mediocre corporate
results and domestic political worries added to the wider
sell-off.
    "Local investors started the day evaluating the re-emergence
of caution overseas with stock markets falling and emerging
market currencies also falling against the dollar," as the
Turkey situation develops, said Regis Chinchila, an analyst at
Sao Paulo-based Terra Investimentos.
    Education companies Kroton Educacional SA and
Estacio Participacoes SA both fell over 6 percent
after reporting disappointing second-quarter results. 
    Heavily weighted state oil company Petroleo Brasileiro SA
 and iron ore miner Vale SA both sank
around 4 percent as commodities prices fell.

    Chinchila said traders were also eyeing a poll released on
Wednesday, which showed market-friendly centrist Geraldo Alckmin
failing to gain traction for Brazil's October presidential
election.

    
  Latin American stock indexes and currencies at 1955 GMT:
    
 Stock indexes                           daily %  YTD %
                                         change   change
                              Latest              
 MSCI Emerging Markets          1023.43    -1.83       -10
                                                  
 MSCI LatAm                     2531.38    -2.26     -8.43
                                                  
 Brazil Bovespa                77159.48    -1.84      0.99
                                                  
 Mexico IPC                    48556.11     -1.1     -1.62
                                                  
 Argentina MerVal              27102.43     2.13     -9.86
                                                  
 Colombia IGBC                 11939.46    -0.73      5.00
                                                  
 Venezuela IBC                 160676.3    14.64  12620.38
                                                  
                                                          
 Currencies                              daily %  YTD %
                                         change   change
                               Latest             
 Brazil real                     3.9017    -0.92    -15.08
                                                  
 Mexico peso                    19.1975    -1.62      2.61
                                                  
 Chile peso                       663.3        0     -7.33
                                                  
 Colombia peso                   3047.5    -1.18     -2.15
 Peru sol                         3.317    -0.54     -2.41
                                                  
 Argentina peso (interbank)       29.75     0.40    -37.48
                                                  
 Argentina peso (parallel)         29.7    -1.35    -35.25
                                                  
 
    

 (Reporting by Gram Slattery and Paula Arend Laier; additional
reporting by Sujata Rao in London; editing by Jonathan Oatis and
Grant McCool)
  
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