April 24, 2019 / 3:10 PM / a year ago

EMERGING MARKETS-Bovespa cools as reform proposal cheer dims, Latam FX falls

    By Aaron Saldanha
    April 24 (Reuters) - Latin American stock markets broadly
fell on Wednesday, with sharp losses seen among Brazil's stocks
as cheer on a pension reform proposal passing a congressional
hurdle wore off, while currencies in Latin America were
pressured by a firm dollar.
    The proposal to reform Brazil's giant pension system - much
awaited among investors - cleared a congressional committee amid
much debate late on Tuesday, but it is not yet out of the woods.
    In broader Latin America, a robust dollar pressured regional
    Neil Dwane, global strategist at Allianz Global Investors,
told the Reuters Global Market Forum most of the optimism around
Brazilian pension reform is already baked into local assets and
domestic growth is now needed in Latin America's top economy.
    "In general, I think many (investors) are overweight
Brazilian equities but not their bond markets, which could be
attractive with reform and lower inflation. At least Brazil is
not yet going backwards like Mexico and Argentina." 
    MSCI's index of Latin American stocks fell
1.5%, as bourses across the region dropped.
    Sao Paulo-traded stocks slid 1.3% on broad-based
losses, giving up a chunk of ground gained in a 2.8% rise over
the three sessions through Tuesday.
    Shares of miner Vale SA fell 1.5%, against a
backdrop of Dalian-traded iron ore futures sliding 1.6%
    Vale said it filed a lawsuit in the United States to force
BSG Resources Ltd to pay it about $1.25 billion, as mandated by
an arbitrator in a dispute over a joint venture in Guinea, plus
interest and expenses. 
    Common shares and preferred shares of
state-run oil firm Petroleo Brasileiro SA (Petrobras) gave up
early gains to fall 1.4% and 0.3%, respectively.
    Brazil's government detailed some additional terms regarding
how winning bidders of a mega oil auction scheduled for later
this year will compensate Petrobras for exploratory and
infrastructure work executed.
    Brazil's real slid 1.2% and was on course for its
lowest closing level in close to a month
    Mexican stocks shed 1%, with conglomerate Alfa's
shares down 5.3%, a day after it posted a steep drop
in first quarter net profit. 
     The peso softened 0.4%. Mexican consumer price
inflation quickened faster than expected in the first two weeks
of April, official data showed on Wednesday.
    Chile's peso fell 0.7% as a tailwind in the form of
recovering prices of copper, the country's top export,
proved an insufficient support. Stocks fell 0.5%.
    Argentina's stocks benchmark fell 2.3%, while the
country's peso slid to its lowest level in more than two
    Colombia's peso weakened 1.1%, while stocks
dropped 0.4%.
    Latin American stock indexes and currencies at 1431 GMT
 Stock indexes                                 daily %
                                   Latest       change
 MSCI Emerging Markets               1082.29     -0.69
 MSCI LatAm                          2719.26     -1.49
 Brazil Bovespa                     94661.11     -1.32
 Mexico IPC                         44705.78     -0.98
 Chile IPSA                          5189.43     -0.53
 Argentina MerVal                   30225.21     -2.27
 Colombia IGBC                      12948.01     -0.44
 Currencies                                    daily %
 Brazil real                          3.9677     -1.16
 Mexico peso                         18.9782     -0.39
 Chile peso                            673.1     -0.80
 Colombia peso                          3209     -0.97
 Peru sol                              3.319     -0.24
 Argentina peso (interbank)          43.4000     -2.24

 (Reporting by Aaron Saldanha in Bengaluru; Editing by Andrea
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