August 27, 2013 / 3:27 PM / 4 years ago

EMERGING MARKETS-Latam stocks down on Syria uncertainty

* Possible U.S. military action drives shares down, dollar
    * Oil watchdog rejects OGX plan to modify production site
    * Brazil Bovespa down 1.55 pct, Mexico IPC falls 0.73 pct

    By Lucas Iberico-Lozada
    SAO PAULO, Aug 27 (Reuters) - Brazilian stocks tracked world
markets lower on Tuesday, as uncertainty over potential U.S.
military action against the Syrian government drove investors
away from risky assets.
    Mexico's IPC index declined for the fifth session in
a row, while Chile's bourse approached its lowest levels
in nearly two years.
    "The Bovespa is reflecting the strong aversion to risk seen
worldwide in relation to Syria," said Newton Rosa, chief
economist at SulAmerica Investimentos in Sao Paulo. "The
situation is affecting primary markets, metals and commodities."
    Uncertainty over a potential U.S. military action against
the Syrian government of Bashar al-Assad caused the dollar to
rise sharply on Tuesday, as investors sought refuge in low-risk
U.S. Treasuries. 
    The Brazilian real weakened to 2.41 reais to the
U.S. dollar, near the 2.45 per dollar level it reached last
week, its weakest since December 2008.
    Brazil's benchmark Bovespa stock index fell for the
second session in a row, dipping 1.55 percent to 50,630.15
    Shares of OGX Petroleo e Gas Participacoes SA,
the oil company controlled by Brazilian tycoon Eike Batista,
fell as much as six percent after Reuters reported that Brazil's
oil industry watchdog plans to reject OGX's proposal to modify
development of Tubarao Azul, its first producing offshore oil
    Shares of Batista's shipbuilding firm, OSX Brasil SA
, fell 5.6 percent after the company said on Tuesday
that Batista would be injecting as much as $50 million into the
company with proceeds from the sale of part of his holdings in
the company. 
    State-run oil company Petroleo Brasileiro SA,
known as Petrobras, and mining giant Vale SA saw
losses of 2.4 percent and 3.8 percent, respectively.
    Mexico's IPC index slipped to below 40,200 points for
the first time in over a month, as shares of miner Grupo Mexico
 fell over 1 percent.
    Also down were shares of lender Santander Mexico
 and conglomerate Alfa.
   Chile's IPSA index fell 0.68 percent to 3,616.30, its
ninth session of losses in ten. The IPSA has shed 15.9 percent
this year.
    Latin America's key stock indexes at 1453 GMT:
 Stock indexes                              daily %    YTD %
                         Latest              change   change
 MSCI LatAm                   3,032.38        -2.22   -18.34
 Brazil Bovespa              50,630.15        -1.55   -16.93
 Mexico IPC                  40,124.72        -0.73    -8.19
 Chile IPSA                   3,616.30        -0.68   -15.93
 Chile IGPA                  17,980.33        -0.53   -14.66
 Argentina MerVal             3,833.91        -1.62    34.32
 Colombia IGBC               13,566.09        -0.25    -7.81
 Peru IGRA                   16,922.89          0.4   -17.97
 Venezuela IBC            1,323,590.00            0   180.76

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