May 4, 2016 / 4:16 PM / 2 years ago

EMERGING MARKETS-LatAm currencies slip on weak U.S. data; real gains

BRASILIA, May 4 (Reuters) - Most Latin American currencies
retreated on Wednesday as economic growth worries weighed on
global markets for a second day, although the Brazilian real
 gained as the central bank stayed clear of intervening.
    Mexico's stock index underperformed other bourses in
the region, falling nearly 1 percent after U.S. data showed
private hiring in Mexico's largest trading partner fell in April
to its lowest level in three years. 
    The Bovespa stock index and the broader MSCI LatAm
 index had small gains, after a brief decline at
the start of the trading session.
    Lackluster manufacturing data from across the world,
including China, had already weighed on emerging market stocks
and currencies this week, after three months of steady gains.
    The downbeat mood contrasted with findings of a Reuters poll
showing most strategists saw emerging currencies holding their
ground against the U.S. dollar throughout this year. Forecasts
were revised up across the board, after two months of strong
portfolio inflows into emerging markets. 
    The Brazilian real was the only currency in Latin
America to advance against the U.S. dollar on Wednesday. The
real had the best performance among the 35 currencies most
traded in the world, according to Thomson Reuters data, edging
closer to eight-month highs by rising more than 1 percent.
    In equities markets, non-voting shares in miner Vale SA
 lost more than 5 percent after Brazilian prosecutors
announced a $155 billion-real ($43.5 billion) civil lawsuit for
the collapse of a dam last year. 
    Shares in Brazilian airline Gol Linhas Aereas Inteligentes
SA jumped 13 percent, their biggest intraday gain in
over five weeks, after proposing investors to take losses of up
to 70 percent on $780 million of outstanding bonds. 
    Key Latin American stock indexes and currencies at 1555 GMT:
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets            811.73     -1.14      3.39
 MSCI LatAm                      2188.74      0.02     19.59
 Brazil Bovespa                 52560.64      0.57     21.25
 Mexico IPC                     45201.43     -0.98      5.17
 Chile IPSA                      3991.90     -0.24      8.47
 Chile IGPA                     19633.75      -0.2      8.17
 Argentina MerVal               13269.15      0.78     13.65
 Colombia IGBC                   9733.47      -0.3     13.88
 Venezuela IBC                  15382.33      0.52      5.44
 Currencies                                daily %     YTD %
                                            change    change
 Brazil real                      3.5308      1.10     11.79
 Mexico peso                     17.7090     -0.45     -2.70
 Chile peso                        670.1     -0.19      5.91
 Colombia peso                   2940.97     -0.95      7.76
 Peru sol                         3.3309      0.03      2.49
 Argentina peso (interbank)      14.2200     -0.07     -8.70
 Argentina peso (parallel)         14.63      0.21     -2.46
 (Reporting by Silvio Cascione; Editing by Meredith Mazzilli)
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