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EMERGING MARKETS-Brazil stocks down on global trade concerns; Eletrobras drops

By Bruno Federowski BRASILIA, May 23 (Reuters) - Brazilian stocks fell sharply on Wednesday after comments by U.S. President Donald Trump reignited concerns over global trade, while shares of state-controlled power utility Centrais Elétricas Brasileiras SA plummeted.

The benchmark Bovespa stock index declined 1.7 percent, more than the 0.9 percent decline by an index tracking Latin American stock markets.

Global stocks suffered after Trump signaled a new direction in U.S.-China trade talks and said any deal would need "a different structure," fueling uncertainty over current negotiations.

Fears that a trade war between the world's top two economies could damage global growth have kept a lid on appetite for risky assets in recent months.

A selloff in the Turkish lira due to growing investor alarm over the direction of monetary policy under President Tayyip Erdogan also kept investors wary of emerging markets.

"There's some justifiable concern over Turkey (among investors in Brazil) because it is also an emerging market and a destination for investments that's comparable to Brazil. There's always a fear of contagion," said Pablo Spyer, the head of trading at Mirae.

Falling shares of Eletrobras helped to intensify losses in the Brazilian market after lower house speaker Rodrigo Maia said a major bill related to its privatization is unlikely to be put to a vote.

But shares of meatpacker Marfrig Global Foods SA jumped around 10 percent after it announced that five companies have qualified to participate in a second phase of bidding for Keystone Foods LLC. Binding proposals are expected next month, Marfrig said.

Key Latin American stock indexes and currencies at 1540 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 1133.89 -0.71 -1.42 MSCI LatAm 2717.69 -0.94 -3 Brazil Bovespa 81320.79 -1.71 6.44 Mexico IPC 45591.92 -0.02 -7.62 Chile IPSA 5634.15 -0.3 1.25 Chile IGPA 28498.52 -0.15 1.85 Argentina MerVal 30342.75 -2.09 0.92 Colombia IGBC 12042.16 -0.73 5.91 Currencies daily % YTD % change change Latest Brazil real 3.6429 0.03 -9.05 Mexico peso 19.7570 0.09 -0.29 Chile peso 624.55 -0.10 -1.59 Colombia peso 2861.2 -0.33 4.22 Peru sol 3.272 -0.03 -1.07 Argentina peso (interbank) 24.4500 -0.61 -23.93 Argentina peso (parallel) 25.45 -0.20 -24.44 (Reporting by Bruno Federowski Editing by Alistair Bell)