By Susan Mathew Feb 27 (Reuters) - Latin American currencies extended losses on Thursday as a jump in new coronavirus cases outside China increased worries about an imminent pandemic that could weigh heavily on global growth. Governments ramped up measures to battle the coronavirus as the number of new infections outside China for the first time surpassed new cases in the country, where the outbreak began. The coronavirus has infected more than 80,000 people and killed nearly 2,800. Brazil confirmed Latin America's first infection on Wednesday, which saw its stocks bleed 7% and its currency hit all-time lows when markets reopened after a extended weekend. On Thursday, Brazil's real currency touched fresh lows of 4.4793 to the dollar, while the Bovespa index lost 1.6% and touched its lowest since October last year. Bank of America Merrill Lynch cut its 2020 Brazilian economic growth outlook to 1.9%, the first major bank to go below the 2% threshold. "Investors seem to be reluctant to buy the dip in equities just yet," said Piotr Matys, senior emerging markets FX strategist at Rabobank. "The rapidly growing realization that the coronavirus may have serious negative consequences for the global economy that could last well beyond first quarter, changed market mentality." Losses on the Bovespa were led by an 7% plunge in beverage maker Ambev SA after it said inflation in Argentina and increased commodity prices kept a lid on margins in the fourth quarter. Mexico's peso slumped to its lowest in three months, down 0.6% at 19.38 to the dollar. The peso is on track for its sixth straight session of losses, which would be its longest losing streak since September 2016. If losses hold, it will have lost about 4% over the six sessions. Mexico's central bank on Wednesday cut its 2020 economic growth forecast and hiked its inflation view, saying projections were shrouded in uncertainty because it was unclear how the spread of the coronavirus would dent global growth. Much remains unknown about the virus, which originated late last year, apparently in a market selling wildlife in the city of Wuhan in China. As the virus spread, increasing worries have wiped about $3.6 trillion dollars from the MSCI's world index . Falling Copper and oil prices hurt the Chilean and the Colombian pesos respectively, with the oil exporter's currency touching a three-month low against the dollar. Chilean stocks slid to a three-year low, down 1.6%. Key Latin American stock indexes and currencies at 1330 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1036.69 -0.63 MSCI LatAm 2463.17 -2.66 Brazil Bovespa 104000.25 -1.63 Mexico IPC - - Chile IPSA 4230.90 -1.55 Argentina MerVal - - Colombia COLCAP - - Currencies Latest Daily % change Brazil real 4.4714 -0.63 Mexico peso 19.3833 -0.52 Chile peso 816.3 -0.76 Colombia peso 3486.19 -0.89 Peru sol 3.4198 -0.32 Argentina peso 62.1200 -0.05 (interbank) (Reporting by Susan Mathew in Bengaluru;)
Source: Read Full Article