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EMERGING MARKETS-Latam stocks dip as China data, U.S. Fed eyed

* Brazil's Bovespa falls 0.17 percent, Mexico's IPC is

little changed

SAO PAULO, Dec 10 (Reuters) - Latin American stocks edged

lower on Tuesday, with investors cautious over a potential

tapering of U.S. monetary stimulus and after slightly

weaker-than-expected Chinese economic data.

The U.S. Federal Reserve should begin trimming its monthly

asset purchases in March, a Reuters poll showed on Monday, but

some economists believe it can come as early as this month or at

the January policy meeting.

The Fed's stimulus program has helped support demand for

riskier assets such as Latin American equities and increased

speculation over Fed action has tended to drag on local shares.

Data on Tuesday showed industrial output in China grew 10

percent in November, a four-month low and slightly below market


China is Brazil's biggest trading partner and a key

purchaser of Latin American commodities exports such as

iron-ore, soy, copper and petroleum.

Brazil's benchmark Bovespa stock index was down 0.17

percent to 51,080.46 after a three-day rally.

Steelmaker Gerdau SA and state-controlled lender

Banco do Brasil SA contributed most to the index's

losses, falling 1.4 percent and 0.7 percent, respectively.

Itaú Unibanco Holding SA, Brazil's largest

non-government bank, dipped 0.2 percent. The bank's return on

equity is likely to surpass 20 percent next year as it benefits

from lower delinquencies and bad loan provisions and climbing

interest income, a source told Reuters.

Homebuilder Gafisa SA helped support the index,

rising 3.5 percent after the company said it had concluded the

sale of 70 percent of its Alphaville unit and announced a stock


Mexico's IPC index was nearly unchanged, hovering

near 42,341 as a 0.5 percent loss in lender Grupo Financiero

Banorte offset a 2 percent rise in mining firm


Chile's IPSA index was also flat, with a 0.5 percent

gain in beverage company CCU offsetting a 0.9 percent

decline in retailer Falabella.

Latin America's key stock indexes at 1447 GMT:

Stock indexes Latest daily % YTD %

change change

MSCI LatAm 3,235.77 0.05 -14.84

Brazil Bovespa 51,080.46 -0.17 -16.20

Mexico IPC 42,276.56 -0.03 -3.27

Chile IPSA 3,702.73 -0.04 -13.92

Chile IGPA 18,264.43 -0.04 -13.32

Argentina MerVal 5,345.94 0.22 87.29

Colombia IGBC 13,047.75 0.10 -11.34

Peru IGRA 14,776.16 -0.02 -28.37

Venezuela IBC 2,616,216.28 0.49 454.94