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EMERGING MARKETS-LatAm currencies down on N.Korea, Fed jitters
September 26, 2017 / 2:44 PM / in 23 days

EMERGING MARKETS-LatAm currencies down on N.Korea, Fed jitters

    By Bruno Federowski
    SAO PAULO, Sept 26 (Reuters) - Latin American currencies
weakened on Tuesday, weighed down by continuing tensions between
North Korea and the United States, as well as the prospect of
higher U.S. interest rates.
    North Korea's foreign minister said on Monday that comments
by U.S. President Donald Trump on Twitter over the weekend
counted as a declaration of war and that Pyongyang reserved the
right to shoot down U.S. bombers.
    The remark spurred demand for safe-haven assets as investors
shed emerging-market stocks and currencies. Expectations also
mounted that the U.S. Federal Reserve is likely to hike rates by
the end of the year, reducing the allure of high-yielding
currencies.
    The Brazilian real weakened 0.3 percent, in line with
similar moves on the Mexican and Chilean pesos
.    
    MSCI's emerging-market equity benchmark fell for a
fourth straight day to its lowest in around three weeks. Still,
many regional stock indexes bucked the trend, with Brazil's
benchmark Bovespa stock index rising 0.6 percent.
    Shares of steelmaker Usinas Siderúrgicas de Minas Gerais SA
 were the biggest gainers, rebounding from a 12.4
percent drop the previous day as China-listed steel futures
recovered. Rival steelmakers Gerdau SA and Cia
Siderúrgica Nacional SA also rose.
    Preferred stock in Cia Energética de Minas Gerais SA
 rose 1.5 percent after plummeting as much as 4.9
percent in early trading. Analysts said a planned capital
increase, despite diluting current shareholders, could help
Brazil's No. 3 power utility cut debt.
    
    Key Latin American stock indexes and currencies at 1720 GMT:
 Stock indexes                               daily %    YTD %
                                              change   change
                                  Latest              
 MSCI Emerging Markets              1083.33    -0.45    26.21
 MSCI LatAm                         2938.16    -0.17    25.75
 Brazil Bovespa                    74899.73     0.61    24.36
 Mexico S&P/BVM IPC                50413.00     0.09    10.45
 Chile IPSA                         5268.23     0.12    26.90
 Chile IGPA                        26298.75     0.09    26.84
 Argentina MerVal                  25047.18        0    48.05
 Colombia IGBC                     11047.25    -0.27     9.08
 Venezuela IBC                    422436.62     0.09  1232.39
                                                             
 Currencies                                  daily %    YTD %
                                              change   change
                                     Latest           
 Brazil real                         3.1667    -0.32     2.61
 Mexico peso                        17.9750    -0.31    15.40
                                                      
 Chile peso                          632.11    -0.44     6.10
 Colombia peso                      2927.55    -0.08     2.53
 Peru sol                             3.266    -0.21     4.53
 Argentina peso (interbank)         17.6300    -0.60    -9.95
                                                      
 Argentina peso (parallel)            17.92     0.17    -6.14
                                                      
 
 (Reporting by Bruno Federowski; Editing by Dan Grebler)
  

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