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EMERGING MARKETS-Brazil stocks slip on China, Fed outlook

* 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

international benchmarks.

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 %

change change

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