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EMERGING MARKETS-Brazil stocks fall off high, Mexico dips

MEXICO CITY, Oct 17 (Reuters) - Stocks in Brazil fell from a

4-1/2 month high on Thursday after minutes from the central

bank's last meeting suggested policymakers will keep hiking

interest rates, which could hurt growth and company sales.

Brazilian stocks have climbed back from a four-year low hit

in July on bets that the worst of an economic slowdown has

passed. Meanwhile, weak growth in Mexico has dragged stocks

there off record highs seen early this year.

* Brazil's Bovespa index fell 1.1 percent, according

to preliminary closing data, pulling back after six straight

session of gains from its highest since late May.

* Central bank minutes suggested policymakers in Brazil

could hike the country's benchmark rate by another 50 basis

points in November to 10.0 percent. Brazil is struggling with

high inflation even as growth remains sluggish.

* Shares of OGX Petróleo e Gás Participações SA

sank nearly 15 percent, preliminary data showed. The stock had

risen sharply in the past two days on hopes of an imminent cash

injection as part of a restructuring plan.

* Brazil's top retailer, Grupo Pão de Açúcar,

fell about 0.8 percent even after its third-quarter earnings

beat analyst forecasts and jumped 70 percent due to robust sales

growth and streamlined operations.

* A Reuters poll showed analysts slightly lifted their

growth forecast for Brazil in 2013 to 2.5 percent from 2.3

percent in July, but they slashed the outlook for 2014 to 2.4

percent from a previous outlook of 3 percent.

* Weighing on stocks across Latin America were concerns

about the economic impact from a 16-day government shutdown in

the United States, one of the region's top trading partners, and

the prospect of another nasty U.S. budget battle early in 2014.

* Mexico's benchmark IPC index fell 0.39 percent as

billionaire Carlos Slim's telecom America Movil

dropped 1.21 percent after the head of the Dutch telecoms group

KPN said the Mexican firm might still make a bid to

take over KPN. America Movil rose on Wednesday after it said it

pulled its offer for the Dutch firm.

* A Reuters poll on Thursday showed analysts cut their

growth outlook for Mexico to 1.3 percent this year, down sharply

from 3.8 percent in 2012, and less than half a 2.9 percent rate

forecast in July.

Latin America's key stock indexes at 2100 GMT:

Stock indexes daily % YTD %

change change


MSCI LatAm 3,475.44 0.34 -8.49

Brazil Bovespa 55,358.13 -1.1 -9.18

Mexico IPC 40,199.47 -0.39 -8.02

Chile IPSA 3,823.21 -0.86 -11.12

Chile IGPA 18,848.13 -0.77 -10.55

Argentina MerVal 5,386.17 2.46 88.70

Colombia IGBC 14,326.59 0.20 -2.65

Peru IGRA 15,734.01 1.25 -23.73

Venezuela IBC 1,883,507 -0.61 299.52