EMERGING MARKETS-Latam assets keel as China virus sours risk appetite
* Global markets spooked by China virus outbreak * Latam stocks index set to end three-day winning streak * Brazil's Vale drops; ex-CEO charged with homicide (Adds details, updates prices) By Shreyashi Sanyal and Ambar Warrick Jan 21 (Reuters) - Stocks and currencies across Latin America fell on Tuesday, tracking a decline in broader emerging markets amid concerns over a flu-like coronavirus outbreak in China. Broader emerging market assets dropped as news of the contagion reminded investors of the economic fallout from the SARS crisis in 2003 that killed nearly 800 people, and led to a recession in Hong Kong. In Latin America, Brazilian stocks fell about 1.4%, their biggest intraday loss since late-November. Iron ore miner Vale was among the largest drags on the Bovespa after documents showed that prosecutors had charged 16 individuals with homicide over a Vale dam burst last year, including the company's then chief executive, Fabio Schvartsman. Brazil's real was slightly softer to the dollar. "The pace of inflows (to emerging markets) is likely to decelerate this week amid rising concerns about China’s coronavirus, which reportedly can be passed between humans," analysts at Rabobank wrote in a note. MSCI's index for Latin American stocks fell 1.5%, on track to snap a three-day winning streak. MSCI's index for currencies in Latin America dropped 0.3%. The risk averse mood was also backed by global growth fears after the International Monetary Fund trimmed back its global growth forecasts for 2020 and 2021. The reductions reflect the IMF's reassessment of economic prospects for a number of major emerging markets as it marked down growth forecasts for Chile due to social unrest and for Mexico, due to a continued weakness in investment. The Mexican peso and the Chilean peso both retreated against the dollar, while stock markets in the two countries also fell. Argentine stocks dropped more than 3%, while the peso dipped slightly as the country's government sought to push through legislation to help solve a mounting debt crisis. Argentina faces negotiations with creditors including the IMF to restructure about $100 billion in sovereign debt, which President Alberto Fernandez has said the country cannot afford to pay until it revives its stalled economy. Concerns over protectionist politics taking the forefront in Argentina had sparked a crash in the peso last year, as investors fretted over the country's ability to repay its debt obligations. Key Latin American stock indexes and currencies at 1911 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1126.50 -1.6741 MSCI LatAm 2884.51 -1.53 Brazil Bovespa 117229.66 -1.37 Mexico IPC 45666.31 -0.51 Chile IPSA 4693.16 -2.55 Argentina MerVal 41711.96 -3.117 Colombia COLCAP 1652.48 -0.23 Currencies Latest Daily % change Brazil real 4.1949 -0.18 Mexico peso 18.7240 -0.35 Chile peso 773.2 -0.49 Colombia peso 3353 -0.69 Peru sol 3.317 -0.03 Argentina peso 60.0950 -0.07 (interbank) (Reporting by Ambar Warrick and Shreyashi Sanyal in Bengaluru Editing by Nick Zieminski and Nick Macfie)
