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EMERGING MARKETS-Brazil stocks slumps off 7-month high, Mexico falls

MEXICO CITY, Oct 23 (Reuters) - Brazilian stocks fell back

from a seven-month high on Wednesday and Mexican stocks slipped

on concerns over tighter monetary policy in China, one of Latin

America's top trading partners.

Brazilian stocks have bounced back from a four-year low in

July on bets that the worst of a slowdown in Brazil, Latin

America's biggest economy, was behind. Before Wednesday, the

country's main index was up more than 25 percent since July.

In Mexico, the region's second biggest economy, stocks fell

off a record high early this year as growth slowed. Mexican

stocks have traded in an increasingly narrow range in recent

weeks. Most companies will report earnings later this week.

* Brazil's benchmark Bovespa stock index snapped a

three-day winning streak to drop 1.81 percent - the biggest

one-day percentage fall this month. On Tuesday, stocks had

closed right above a key resistance level.

* A policy adviser to the People's Bank of China told

Reuters on Tuesday that the authority may tighten cash

conditions in the financial system to address inflation risks,

which could also sap economic growth in a key market for Latin

American iron ore, soybeans, oil and copper.

* Shares of iron-ore producer Vale SA shed 1.8

percent, while rival MMX Mineracao e Metalicos SA

sank 4.17 percent.

* Lender Banco Bradesco SA fell 2.03 percent

after JPMorgan Securities analysts lowered their recommendation

on the shares to "neutral" from "overweight," saying a recent

rally in the stock has made it less attractive.

* Brazil must take more decisive action to raise

productivity and boost private investment if it is to restore

robust growth to its once-booming economy, the International

Monetary Fund said on Wednesday in its annual economic

assessment of Brazil.

* Mexico's IPC index fell 0.64 percent as shares of

telecommunications firm America Movil, controlled by

billionaire Carlos Slim, slipped 1.01 percent.

* Mexico's biggest retailer, Wal-Mart de Mexico

, fell 0.65 percent. After market close, the company

reported that third-quarter profit rose 0.74 percent from a

year earlier, helped by higher sales and new store openings.

* Mexican supermarket chain Grupo Comercial Chedraui

fell 0.73 percent, paring losses after it said its

third-quarter profit rose 2.5 percent, helped by new store


Latin America's key stock indexes at 2100 GMT:

Stock indexes daily % YTD %

Latest change change

MSCI LatAm 3,452.83 -1.51 -9.08

Brazil Bovespa 55,440.03 -1.81 -9.04

Mexico IPC 40,552.59 -0.64 -7.21

Chile IPSA 3,930.06 0.9 -8.63

Chile IGPA 19,297.81 0.7 -8.41

Argentina MerVal 5,363.47 -4.5 87.91

Colombia IGBC 14,274.76 -0.27 -3.00

Peru IGRA 16,197.65 -0.54 -21.48

Venezuela IBC 2,012,806.06 1.11 326.95