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EMERGING MARKETS-Brazil shares end 4-day run of gains, hit by weak China data

Credit: REUTERS/PILAR OLIVARES

Brazilian shares broke a four-day run of gains on Tuesday, mirroring declines in global stocks after weak China data fueled growth concerns, while currencies were tepid ahead of major central bank policy decisions.

By Ambar Warrick

Sept 10 (Reuters) - Brazilian shares broke a four-day run of gains on Tuesday, mirroring declines in global stocks after weak China data fueled growth concerns, while currencies were tepid ahead of major central bank policy decisions.

The Bovespa .BVSP dropped 0.4%, easing off one-month highs as a handful of retailers fell on the news that U.S. online retail giant Amazon.com Inc AMZN.O will launch its Prime subscription service in the country.

Magazine Luiza MGLU3.SA, Via Varejo VVAR3.SA and B2W BTOW3.SA fell between 4% to 6%, leading declines in the Bovespa.

Major lenders including Banco Bradesco SA BBDC4.SA, Itau Unibanco Holding SA ITUB4.SA and Banco do Brasil SA BBAS3.SA dropped about 2% each after Brazil's government cut its annual inflation forecast, pointing to further monetary easing in Latin America's largest economy.

The government also slightly raised Brazil's annual economic growth forecast.

The MSCI's index of Latin American stocks .MILA00000PUS retreated about 0.3%, with shares in Mexico .MXX and Colombia .IGBC in the red after data showed China's producer prices shrank at the sharpest pace in three years in August, fueling fears of a global economic slowdown.

Most currencies made slight moves against the dollar, as investors awaited the European Central Bank's monetary policy decision on Thursday, when it is expected to cut interest rates and restart an asset purchase programme.

Investors, however, are anxious about how far policymakers are willing to go to stimulate their slowing economies.

"Global markets have taken on a subdued tone as investors look ahead to Thursday's crucial ECB policy meeting," Ned Rumpeltin from TD Securities wrote in a note.

The Brazilian real BRL= pared early losses and traded sideways, with other currencies in the region .MILA00000CUS moving in a similar range.

The Mexican peso MXN= added about 0.2%. Finance Minister Arturo Herrera said state-oil firm Pemex is exploring opening a bidding process for public-private contracts in order to ensure the debt-laden firm has enough money to invest and manage its debt profile.

Latin American stock indexes and currencies at 1928 GMT:

Stock indexes

Latest

Daily % change

MSCI Emerging Markets .MSCIEF

1007.89

-0.27

MSCI LatAm .MILA00000PUS

2663.72

-0.34

Brazil Bovespa .BVSP

102807.52

-0.36

Mexico IPC .MXX

42609.18

-0.12

Chile IPSA .SPIPSA

4880.60

0.41

Argentina MerVal .MERV

28176.04

3.678

Colombia IGBC .IGBC

12768.22

-0.06

Currencies

Latest

Daily % change

Brazil real BRBY

4.0975

-0.02

Mexico peso MXN=D2

19.5200

0.21

Chile peso CLP=CL

711.55

0.41

Colombia peso COP=

3359.53

0.27

Peru sol PEN=PE

3.343

0.18

Argentina peso (interbank) ARS=RASL

56.0000

0.04

(Reporting by Ambar Warrick and Sruthi Shankar in Bengaluru; Editing by Sandra Maler)

((Ambar.Warrick@thomsonreuters.com; +91-80-6749-6625; Reuters Messaging: ambar.warrick.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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