(Updates prices; adds details, MEXICO CITY dateline)
By Miguel Angel Gutierrez and Bruno Federowski
MEXICO CITY/SAO PAULO, Dec 16 Mexico stocks
posted their worst week since January, losing ground on Friday
for the fourth session in a row amid concerns about higher
interest rates in the United States and Mexico.
The U.S. Federal Reserve this week revised the number of
rate hikes it expects for next year to three from two, following
President-elect Donald Trump's promises of tax cuts and
increased government spending.
Latin American currencies also slipped on Friday as worries
over higher U.S. interest rates offset a sharper-than-expected
rate hike by the Mexican central bank.
Mexico's benchmark IPC index closed 1.64 percent
lower on Friday and its drop on the week totaled 3.82 percent.
Brazil's Bovespa index ended nearly flat.
Mexico's peso weakened nearly 0.5 percent, erasing
most of its gains seen in the previous session after the
country's central bank raised interest rates by 50 basis points.
The bank has raised rates five times this year in a bid to
curb price pressures stemming from a weaker peso, which set
record lows against the dollar in the wake of Trump's victory
last month in the U.S. presidential election.
Despite the Mexican central bank's action, traders remained
concerned that higher U.S. rates over the coming months could
spark outflows from high-yielding, Latin American bonds.
Key Latin American stock indexes and currencies at 2208 GMT:
Stock indexes Latest Daily YTD pct
MSCI Emerging Markets 856.40 -0.26 7.84
MSCI LatAm 2,242.51 -0.56 22.55
Brazil Bovespa 58,389.04 -0.01 34.69
Mexico IPC 45,121.39 -1.64 4.99
Chile IPSA 4,212.37 -0.29 14.46
Chile IGPA 21,056.36 -0.25 16.00
Argentina MerVal 16,563.50 -1.04 41.87
Colombia IGBC 10,040.73 0.09 17.47
Venezuela IBC 30,078.16 -1.43 106.18
Currencies Latest Daily YTD pct
Brazil real 3.3889 -0.55 16.47
Mexico peso 20.43 -0.48 -15.66
Chile peso 673.4 -1.10 5.39
Colombia peso 3,007 -0.22 5.40
Peru sol 3.402 0.00 0.35
Argentina peso (interbank) 15.8900 0.47 -18.30
Argentina peso (parallel) 16.64 0.12 -14.24
(Reporting by Miguel Angel Gutierrez in Mexico City and Bruno
Federowski in Sao Paulo, editing by G Crosse)