By Bruno Federowski BRASILIA, June 21 (Reuters) - Brazilian stocks fell on Thursday as traders booked profits from a two-day string of gains in the wake of growing trade tensions between the United States and China, while Argentine shares soared.
The benchmark Bovespa stock index fell 1.4 percent, paring back a 3.3 percent increase in the two previous days, its best such stretch since May.
Improving demand for emerging market assets worldwide had helped to support the index earlier this week, but appetite for risky assets wavered on Thursday after China's commerce ministry accused the United States of being "capricious" over bilateral trade issues.
On Monday, President Donald Trump threatened to hit $200 billion of Chinese imports with 10 percent tariffs if Beijing retaliates against a previous announcement to target $50 billion in imports.
Blue-chip stocks, such as state-controlled oil company Petróleo Berasileiro SA, lender Itaú Unibanco SA and miner Vale SA, subtracted the most points from the Bovespa index.
Argentine stocks, however, rallied after index provider MSCI upgraded the country to its emerging markets index a day earlier, a respite from months of dismal economic news for market-friendly President Mauricio Macri in recent months.
Other Latin American stock markets, as well as currencies, were mostly lower as traders refrained from making large bets amid wariness over the global trade outlook.
Currencies from Brazil, Mexico and Chile slipped between 0.1 and 0.3 percent, while falling oil prices drove the Colombian peso 1 percent down.
Key Latin American stock indexes and currencies at 1605 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 1082.08 -1.02 -5.63 MSCI LatAm 2427.91 -1.56 -12.79 Brazil Bovespa 71094.62 -1.43 -6.95 Mexico IPC 46616.91 -0.3 -5.55 Chile IPSA 5425.42 0.15 -2.50 Chile IGPA 27415.33 0.12 -2.02 Argentina MerVal 31206.25 7.17 3.79 Colombia IGBC 12079.19 0.08 6.23 Currencies daily % YTD % change change Latest Brazil real 3.7930 -0.30 -12.65 Mexico peso 20.3715 -0.11 -3.30 Chile peso 641.1 -0.19 -4.13 Colombia peso 2952.24 -1.01 1.01 Peru sol 3.277 0.03 -1.22 Argentina peso (interbank) 27.4300 1.35 -32.19 Argentina peso (parallel) 27.85 1.80 -30.95 (Reporting by Bruno Federowski Editing by Chizu Nomiyama)