October 1, 2019 / 2:33 PM / 8 months ago

EMERGING MARKETS-Dollar strength casts a pall on Latam FX, stocks fall

    Oct 1 (Reuters) - Latin American currencies slumped on
Tuesday in line with their emerging market peers as the dollar
held to a 29-month high, while uncertainty related to U.S.-China
trade, coupled with global growth worries, kept investors from
making riskier bets.
    MSCI's index of Latin American currencies
fell 0.3% lower to hit a near-one month low, with Argentina's
peso leading losses. 
    Final PMI readings in Europe at seven-year lows and weak
confidence readings in Japan led investors to ride on the
greenback, denting most developing world currencies.
    "We think that the weakness in EM currencies has further to
go," said Morgan Stanley analysts in a note, "and we think more
disappointment is due for October."
    Representatives from the United States and China are due to
meet for high-level trade talks next week in Washington but it
is not clear if they will be able to resolve the dispute.
    Brazil's real weakened 0.5% despite industrial
production rising in August at its fastest pace in over a year, 
as a strong dollar took its toll on the currency.
    The Bovespa fell 0.5% with meatpacker BRF
sliding 2% lower after admitting to bribing food inspectors with
bank deposits and health benefits.  
    Mexican stocks were marginally higher, while the peso
 softened 0.3%.
    Chile's peso made the smallest losses after data
showed economic activity rose 3.7% in August from a year ago,
beating expectations and boosted by a surge in mining following
several months of sluggish growth.
  Latin American stock indexes and currencies at 14:08 GMT
 Stock indexes                                  daily % change
 MSCI Emerging Markets              997.91               -0.31
 MSCI LatAm                        2647.93               -0.71
 Brazil Bovespa                  104205.77               -0.52
 Mexico IPC                       43026.83                0.04
 Chile IPSA                        5039.21               -0.39
 Argentina MerVal                        -                   -
 Colombia IGBC                    12874.34                0.33
 Currencies                                     daily % change
 Brazil real                        4.1776               -0.55
 Mexico peso                       19.7876               -0.30
 Chile peso                          729.1               -0.11
 Colombia peso                     3490.57               -0.40
 Peru sol                           3.3898               -0.61
 Argentina peso                    57.7200               -0.22

 (Reporting by Agamoni Ghosh
Editing by Nick Zieminski)
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