EMERGING MARKETS-Brazil stocks fall on Fed tapering fears


* Brazil Bovespa loses 1.21 pct, Mexico IPC down 0.67 pct

MEXICO CITY, Nov 7 (Reuters) - Brazilian stocks plunged onThursday, falling to their lowest level in nearly a month, onconcerns about the future of the U.S. Federal Reserve Bankmonetary stimulus program.

Brazil's benchmark Bovespa stock index closed theday down 1.21 percent, while Mexico's IPC index was down0.67 percent.

Investors in Brazilian stocks took little cheer from newsthat U.S. economic growth accelerated in the third quarter, withgross domestic product growing at a 2.8 percent annual rate, itsquickest pace in a year.

The positive economic data raised questions about the timingof the Fed's tapering of its $85 billion a month bond-buyingprogram, which has helped maintain interest in riskier, emergingmarket assets that are widely seen to offer better yields.

The preferred shares of the world's top iron-ore miner, ValeSA, which began the day in the black, lost 3.25percent, despite having reported on Wednesday that third-quarternet income more than doubled from a year earlier.

The company confirmed on Thursday that it is in talks withGlencore Xstrata about potential cooperation betweentheir respective nickel operations in Canada's Sudbury basin inan effort to cut costs as prices languish.

Oil producer Petrobras also suffered, with itsshares falling 2.01 percent.

The shares of Eletropaulo Metropolitana Eletricidade de SãoPaulo SA, Brazil's largest power distributor, jumped9.2 percent after the company reported a better-than-expectedquarterly profit late on Wednesday.

Telefonica Brasil SA shares slipped 3.05 percentafter the company posted a 17 percent drop in quarterly earningson Thursday, partly due to heavy spending on its strugglingpay-TV business.

Mexico's IPC index fell 0.67 percent to 40,009.90,thanks to a 0.78 percent decline in shares of telecommunicationscompany America Movil.

Chile's IPSA index was flat at 3,904.28.

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