By Agamoni Ghosh Jan 22 (Reuters) - Stocks in Brazil fell on Tuesday dragged by shares of material companies amid global growth fears stemming from weak Chinese economic data and a lowered outlook for 2019 from the International Monetary Fund.
The IMF trimmed its global growth forecasts on Monday as trade tensions and weakness in Europe loomed, an action that came shortly after China reported its slowest growth in 28 years for 2018, sending equities lower worldwide.
The U.S. dollar strengthened against a basket of currencies as investors sought refuge in the safe asset and moved away from riskier bets, including emerging market currencies.
"EM assets are taking a breather as global growth concerns remain high ... Optimism on trade is fading too," said Morgan Stanley analysts in a note.
Sao Paulo's benchmark index Bovespa fell 0.2 percent pressured by a drop in shares of material companies with iron-ore miner Vale emerging as one of the top losers on the index.
Investor also focused on President Jair Bolsonaro's speech at the World Economic Forum in Davos, Switzerland, where he is slated to unveil details about the new government's economic reforms, particularly pension reforms.
The market also has in its radar on meetings between Brazil's minister of economy, Paulo Guedes, and other world economic authorities at the summit.
In currencies, Brazil's real and Mexico's peso were a shade weaker, with the latter falling for the fourth-straight session as a near 2 percent drop in oil prices weighed on the crude exporter.
Chile's peso fell by 0.2 percent as the price of copper declined, while stocks on the IPSA index dropped about half a percent with steel producer CAP emerging as the biggest loser on the index.
Key Latin American stock indexes and currencies at 1330 Stock indexes daily % Latest change MSCI Emerging Markets 1013.84 -0.45 MSCI LatAm 2843.42 -0.12 Brazil Bovespa 95888.40 -0.13 Mexico IPC - - Chile IPSA 5421.85 -0.63 Argentina MerVal - - Colombia IGBC - - Currencies daily % Latest change Brazil real 3.7547 -0.08 Mexico peso 19.1739 -0.08 Chile peso 673.33 -0.18 Colombia peso - - Peru sol - - Argentina peso (interbank) - - (Reporting by Agamoni Ghosh in Bengaluru; Additional reportig by Laís Martins and Camila Moreira)