Latin American equities closed at a three-week low on Friday as investors fretted about Brazilian monetary tightening and that higher Chinese interest rates would slow the region's exports to China. The MSCI Latin American stocks index dipped 0.13 percent and lost 2 percent for the week.
Brazil's central bank raised borrowing costs late on Wednesday, issuing a statement that suggested more monetary measures could be on the way. Mexico's benchmark IPC stock index fell 0.70 percent, reaching its lowest level since early December. Brazilian equities also dragged, with the benchmark Bovespa index down 0.62 percent, its lowest since the end of January. Banks were among stocks that fell in Sao Paulo on Friday.
Banco do Brasil, Latin America's largest bank by assets, gave up 0.45 percent. Itau Unibanco, Brazil's biggest private sector lender and rival Bradesco declined 0.82 percent. OGX Petro Gas shed 4.48 percent. Beef processor JBS rose 1.62 percent. A group of companies led by the Brazilian company has arranged a financing package to bid for all or parts of Sara Lee Corp a source with direct knowledge of the situation told Reuters.
But the take-over plan could take a toll on JBS shares, HSBC analysts said. In Mexican trading, shares of top retailer Wal-Mart de Mexico lost 0.95 percent and telecom giant America Movil dropped 0.42 percent. Chile's IPSA index rose 0.1 percent. The index has decoupled from regional bourses after the central bank announced a $12 billion currency intervention. Industrial conglomerate Copec gained 1.58 percent and retailer Cencosud added 0.31 percent.
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