November 21, 2018 / 10:07 PM / 10 months ago

EMERGING MARKETS-Latam equities, FX weighed on by Brazil stocks, real

 (Rewrites to update prices, adds economist's quotes)
    By Aaron Saldanha
    Nov 21 (Reuters) - Latin American stocks and currencies fell
for a third straight day on Wednesday, hurt by weakening assets
in heavyweight Brazil, whose markets reopened for trade and
reflected some of the weakness the rest of the region had shown
on Tuesday.
    MSCI's index of Latin America stocks and
currencies fell 0.8 percent and 0.3 percent on
Wednesday, despite some signs of optimism in other countries.
Brazilian securities have major weighting on both indexes.
    Reports of Apple Inc cutting iPhone production
orders led to a rout. It spread over fears of slowing global
growth, softening investor sentiment towards Latin American over
the last two sessions.
    Assets in the continent's top economy side-stepped weakness
which engulfed the region on Tuesday but sold off as they traded
again on Wednesday.
    Stocks on Brazil's benchmark dropped 0.7 percent,
with the energy and materials sectors dragging down the index
the most.
    State-controlled oil firm Petroleo Brasileiro SA
and iron ore miner Vale SA fell 3.2 percent and 1.5
percent, respectively, adjusting for the decline their American
Depository Receipts saw on Tuesday.
    Higher commodity prices on Wednesday softened the
adjustment, however.   
    The real softened 1.1 percent, its worst one-day
performance in more than three weeks.        
    Mexican stocks slid 0.7 percent after a lawmaker
presented a bill that would require the consent of indigenous
communities before granting mining concessions on their land.

    Mining firm Industrias Penoles fell 7.2 percent
while Grupo Mexico SAB de CV closed at its lowest
in more than two years.
    However, the peso firmed about 0.6 percent against a
dollar which was weakened by investors exiting safe haven
    The peso has firmed around 1.2 percent to about 20.26 per
dollar from hitting near four-month closing lows last week. 
    "We think the exchange rate is going to remain where it is
now, we think it will be close to 20 pesos a dollar by the end
of this year," said Alexis Milo, chief economist for Mexico at
    "That pretty much depends on not having new surprises which
increase market concerns and implies they come up with a budget
that is credible."
    The scrapping of an already begun airport project by the
incoming administration and a senator's proposal to cap or
eliminate some banking commissions have shaken investor
sentiment in the last the few weeks.
    President-elect Andres Manuel Lopez Obrador's administration
is due to present the budget in the next few weeks, with
investors eager to see the direction policy will take.   
    Argentina's stocks benchmark rose 1.9 percent to
make back some of the 4.5 percent loss seen on Tuesday, but the
peso weakened.     
    Latin American stock indexes and currencies at 2138 GMT
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets          975.04      0.25    -15.83
 MSCI LatAm                    2605.13     -0.77     -7.89
 Brazil Bovespa               87268.80     -0.72     14.22
 Mexico IPC                   41499.93     -0.71    -15.91
 Chile IPSA                    5128.45      0.55      0.55
 Argentina MerVal             30262.92      1.85      0.66
 Colombia IGBC                12081.99       0.5      6.26
 Currencies                              daily %     YTD %
                                          change    change
 Brazil real                    3.7980     -0.24    -12.76
 Mexico peso                   20.2377      0.55     -2.66
 Chile peso                      667.2      0.61     -7.88
 Colombia peso                 3190.28      0.18     -6.53
 Peru sol                        3.376      0.24     -4.12
 Argentina peso                36.2600     -0.17    -48.70

 (Reporting by Aaron Saldanha in Bengaluru; editing by Grant
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