* Apple warns of revenue shortfall due to coronavirus
* Latam stocks index hits 1-week low
* Citi cuts growth forecast for Brazil
(Updates prices, adds analysts' comment)
By Sruthi Shankar
Feb 18 (Reuters) - Latin American currencies and stocks came
under pressure on Tuesday as Apple Inc's sales warning
underscored fears about economic damage from the coronavirus
outbreak.
MSCI's index of Latin American equities fell
1% to its lowest level in one week, with stocks markets in
Brazil, Chile and Argentina falling
between 0.5% and 2.6%.
The world's most valuable technology company said it will
miss its March quarter sales guidance as the fast-spreading
outbreak in China disrupted supply chains.
The warning sent jitters through global financial markets
which were off to an upbeat start to the week after China's
stimulus efforts on Monday.
"We all know Apple's supply chain is very heavily dependent
on China. It's not surprising that this is coming out," said Jim
Besaw, chief investment officer at GenTrust.
"What's probably more relevant is what everyone thinks is
going to be the evolution of the epidemic over the next several
weeks which seems to be a bit of a wild card."
A Bank of America Merrill Lynch survey showed slowing
economic growth and commodities demand in China as the biggest
worries among Latin American fund managers by far.
Demand for safer assets boosted the dollar, weakening
Brazil's real for the second session as Citigroup cut its
economic growth and inflation forecasts for the country. It
cited fallout from the coronavirus in China, which is Brazil's
largest trading partner.
Argentine bonds drifted 1% lower on the penultimate day of
meetings in Buenos Aires with the International Monetary Fund,
with policymakers rushing to hammer out a revamp of $44 billion
in loans.
The IMF mission ends on Wednesday, with a statement that
Argentina hopes will not only announce a postponement of loan
repayments to the fund but support for its upcoming
restructuring of bonds.
Key Latin American stock indexes and currencies at 2015 GMT:
Stock indexes Latest Daily %
change
MSCI Emerging Markets 1095.05 -1.17
MSCI LatAm 2757.64 -1.12
Brazil Bovespa 114688.17 -0.54
Mexico IPC 44983.49 -0.07
Chile IPSA 4543.62 -1.89
Argentina MerVal 38158.11 -2.659
Colombia COLCAP 1663.79 -0.1
Currencies Latest Daily %
change
Brazil real 4.3576 -0.71
Mexico peso 18.5876 -0.21
Chile peso 796.9 -0.48
Colombia peso 3401.4 -0.18
Peru sol 3.382 -0.12
Argentina peso (interbank) 61.6600 -0.10
(Reporting by Sruthi Shankar and Shreyashi Sanyal in Bengaluru;
Editing by Tom Brown)
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