January 14, 2019 / 2:13 PM / 4 months ago

EMERGING MARKETS-Brazil real, Chile peso slip after weak China data

    By Susan Mathew
    Jan 14 (Reuters) - Brazil's real dropped to its lowest in a
week on Monday and the Chilean peso weakened in line with other
emerging markets currencies as dismal trade data from China
deepened fears of slowing global growth.
    Chinese exports unexpectedly fell the most in two years in
December, while imports also contracted, pointing to
deteriorating global demand and further cooling of the world's
second largest economy.
    The Brazilian real weakened 0.4 percent to its lowest
since Jan. 8 against a steady dollar. Chile's currency as
well as Chilean stocks declined as prices of the
country's main export copper fell after top copper
consumer China's trade data disappointed.
    The Mexican peso recovered some of its earlier losses
when it was on course to post its worst day in two weeks.
    "The trade data from China sort of refocused markets on the
global macro economic situation after a week where we had quite
an upswing in sentiment," said Jakob Christensen, chief analyst
and head of EM research at Danske Bank.
    Christensen said he was skeptical about the macro picture
improving in the near term, particularly for the global
manufacturing cycle. 
    Emerging markets, including Latin American assets, ended
last week higher as signs of progress on easing the China-U.S.
trade war and a cautious U.S. Federal Reserve supported risk
sentiment.
    Brazil's Bovespa stock index recovered from losses
earlier in the session to continue on its record high path,
hitting a fresh high. 
    State-run sanitation company Companhia de Saneamento Básico
do Estado de São Paulo, or Sabesp, was a big boost to
the index, up 6 percent as Sao Paulo officials discussed its
privatization.
 
    
    Key Latin American stock indexes and currencies at 1340 GMT:
    Stock indexes             Latest    Daily %
                                         change
 MSCI Emerging Markets          991.74     -0.94
                                        
 MSCI LatAm                    2813.03     -0.16
                                        
 Brazil Bovespa               93948.58      0.31
                                        
 Mexico IPC                          -         -
                                        
 Chile IPSA                    5344.60     -0.15
                                        
 Argentina MerVal                    -         -
                                        
 Colombia IGBC                       -         -
                                        
                                                
       Currencies             Latest    Daily %
                                         change
 Brazil real                    3.7259     -0.32
                                        
 Mexico peso                   19.1412     -0.05
                                        
 Chile peso                      676.4     -0.28
                                        
 Colombia peso                       -         -
 Peru sol                            -         -
                                        
 Argentina peso                      -         -
 (interbank)                            
                                        
 

 (Reporting by Susan Mathew in Bengaluru; Editing by Jeffrey
Benkoe)
  
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