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EMERGING MARKETS-Brazil's real hits 10-year low after China data
February 9, 2015 / 4:16 PM / 3 years ago

EMERGING MARKETS-Brazil's real hits 10-year low after China data

SAO PAULO, Feb 9 (Reuters) - The Brazilian real  
dropped to its weakest level against the dollar in over 10 years
on Monday following disappointing economic data from top trade
partner China.
    The MSCI Latin American stock index moved
slightly higher as Brazil's Bovespa index offset
declines in Mexican and Chilean stocks.
    Data released late on Sunday showed China's imports dropped
19.9 percent in January from a year earlier, particularly
imports of coal, oil and commodities. 
    Latin America is one of China's top suppliers of raw
materials such as iron ore, soybeans, copper and petroleum. Data
suggesting a slowdown in the Chinese economy tends to reduce
demand for Latin American assets.
    Brazil's real weakened for the fourth straight session,
hitting a session low of 2.7967 per dollar, a level it has not
reached in over a decade.
    The currency has taken a beating over the past six months,
dropping nearly 25 percent on a range of concerns including
weakening economic fundamentals, a potential credit downgrade
and expectations for higher U.S. interest rates.
    Other Latin American currencies, particularly those of
petroleum producers Colombia and Mexico  managed
slight gains on Monday, driven by a modest rally in oil prices.
    Oil rose for a third straight session on Monday as OPEC
forecast greater demand for crude this year than previously
thought and projected less supply from countries outside the
    In equity markets, Brazil's Bovespa index erased the
previous session's losses, driven by shares of state-run oil
producer Petroleo Brasileiro SA, known as Petrobras,
and mining firm Vale SA.
    Petrobras' gains were driven mostly by bargain hunting after
the stock lost 7 percent in the previous session. Investors were
disappointed on Friday by the naming of Aldemir Bendine, a close
government ally and former Banco do Brasil chief
executive, as CEO at the troubled oil company.
    Meanwhile, Vale, which gets most of its revenues in dollars,
gained on the weakening local currency.

    Key Latin American stock indexes and currencies at 1539 GMT:
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets          972.63     -0.61      2.33
 MSCI LatAm                    2634.27      0.58     -3.98
 Brazil Bovespa                  49417      1.28     -1.18
 Mexico IPC                   42660.37     -0.13     -1.12
 Chile IPSA                    3927.79     -0.59      2.00
 Chile IGPA                    19116.3     -0.52      1.30
 Argentina MerVal              9079.14      0.78      5.83
 Colombia IGBC                11051.14      0.14     -5.02
 Peru IGRA                    13691.67      1.16     -7.45
 Venezuela IBC                 3614.24     -0.07     -6.34
 Currencies                              daily %     YTD %
                                          change    change
 Brazil real                    2.7857     -0.32     -4.60
 Mexico peso                   14.7859      0.36     -0.28
 Chile peso                      623.9      0.46     -2.80
 Colombia peso                  2369.2      0.46      0.79
 Peru sol                        3.063      0.16     -2.74
 Argentina peso                 8.6550      0.06     -1.21
 Argentina peso                  13.12      0.61      6.71

 (Reporting by Asher Levine; Editing by Meredith Mazzilli)

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