November 20, 2018 / 3:26 PM / 5 months ago

Latin American FX, stocks feel global stock rout pressure

A man watches news on TV on the agreement between Argentina’s government and the International Monetary Fund (IMF) as he works on the floor of the Buenos Aires Stock Exchange, Argentina September 26, 2018. REUTERS/Marcos Brindicci

(Reuters) - Latin American currencies and stocks weakened on Tuesday, extending losses from the previous session as a world-wide rout in stock markets continued.

The Mexican peso MXN= fell 0.5 percent against the dollar which perked up slightly as the euro lost momentum due to jitters about Italian banks and the stocks rout.

Financial markets in Brazil were closed for a local holiday.

Wall Street opened lower after an Apple-led (AAPL.O) tech slide overnight triggered the global sell-off.

Investor sentiment, already marred by Sino-U.S. trade tensions, took a dive as slackening demand for iPhones added to the recent concerns of a slowdown in the global economy.

“The emerging markets fall was a spillover from yesterday and I think global investors will be watching the tech space very closely now given the run some of these stocks have had,” Chris Turner, head of EMEA and LATAM research at ING had said earlier in the day.

“It seems almost as though the last bastion of outperformers (U.S. tech stocks) have now come under pressure.”

The Argentine peso ARS= led losses in the region, down 1 percent and on pace to log its steepest one-day loss in a week. The Chilean peso CLP= fell after four straight gaining days.

Among stocks, Buenos Aires' Merval index .MERV dropped more than 2 percent, while Chile's IPSA .SPCLXIPSA shaved off 0.8 percent.

Reporting by Susan Mathew in Bengaluru; Editing by David Gregorio

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