* Brazil Bovespa falls 0.68 pct, Mexico IPC up 0.27 pct
SAO PAULO, Nov 21 (Reuters) - Brazilian stocks dropped on
Thursday after a market holiday, with investors eyeing the
potential reduction of U.S. monetary stimulus and weaker
economic data from top trade partner China.
Mexico's IPC index climbed for the second straight
day, while Chile's bourse edged lower. Brazil's
benchmark Bovespa stock index lost 0.68 percent to
A business survey in China, a major buyer of Latin American
commodities exports, suggested economic growth may have peaked
in the third quarter. The outlook for Chinese growth often
drives prices for widely-traded Brazilian stocks such as iron
ore miner Vale SA, which dropped 1 percent.
Shares of state-run oil firm Petroleo Brasileiro SA
, known as Petrobras, fell 1.4 percent after the
company delayed a decision on a new pricing methodology for
domestic gasoline and diesel that would better reflect
Currently, Petrobras imports fuel to meet domestic demand
while selling it at a loss at the government's insistence in
order to help control inflation.
Brazilian stocks were also playing catch-up with foreign
markets after Wednesday's holiday, when minutes from a U.S.
Federal Reserve policy-setting meeting suggested a potential
tapering of its massive bond-buying program in coming months.
"The market returned to speculation that this could happen
in December, creating a rise in the dollar and uncertainty for
markets," said Fausto Gouveia, an economist with Legan Asset
Management in Sao Paulo.
Shares of real estate developer BR Properties SA
jumped 8.5 percent after the company announced it would sell all
of its industrial warehouses and logistics facilities for $1.38
billion. The company said in a filing that the funds would be
used to pay dividends and reduce debt.
Shares of telecommunications firm Tim Participacoes SA
rose 4.5 percent after the head of parent company
Telecom Italia said he would consider selling the unit
under the right conditions.
Mexico's IPC index rose slightly, adding 0.27 percent
to 40,907.01 after data showed Mexico's economy grew at its
fastest pace in more than a year in the third quarter.
Shares of telecommunications firm America Movil,
controlled by billionaire Carlos Slim, rose 1.7 percent, while
cement manufacturer Cemex advanced 1 percent.
Chile's IPSA index fell slightly, as a 0.8 percent
gain in regional energy group Enersis failed to offset
a 1.2 percent loss in Banco Santander Chile.
Latin America's key stock indexes at 1508 GMT:
Stock indexes Latest daily % YTD %
MSCI LatAm 3,288.59 -1.63 -11.98
Brazil Bovespa 52,674.36 -0.68 -13.58
Mexico IPC 40,907.01 0.27 -6.40
Chile IPSA 3,761.43 -0.09 -12.55
Chile IGPA 18,546.09 -0.04 -11.98
Argentina MerVal 5,434.14 1.34 90.38
Colombia IGBC 13,383.05 -0.07 -9.06
Peru IGRA 15,182.03 -0.14 -26.41
Venezuela IBC 2,171,416.6 0.74 360.60