Latin American stocks slipped on Friday on a rise in bank reserve requirements in China, a major consumer of the region's raw material exports. The MSCI Latin American stocks index moved down 0.68 percent, adding to losses in the previous session. Nevertheless, the index was still up about 0.4 percent for the week.
China's central bank raised lenders' required reserves on Friday for the fourth time in just over two months, stepping up the fight against inflation that it has vowed will be a top priority for the year. China - with its voracious appetite for commodities - has been a major driver of global growth and a particularly important trading partner for Latin America. The Reuters-Jefferies commodities index dropped 0.38 percent, and global stocks fell after the tightening in Chinese policy.
Brazil's benchmark Bovespa index dipped 0.04 percent, after notching its biggest one-day drop in more than a month in the previous session. On the upside, shares of state-controlled energy company Petrobras gained 0.62 percent, bouncing from their steepest drop in the previous session since November. But shares of steelmakers fell, with Usiminas down 0.99 percent, Gerdau 0.9 percent and CSN 0.54 percent.
Chile's IPSA index edged up 0.21 percent, possibly extending a two-day rally that saw the index put on about 2 percent. The Santiago stock exchange has come uncoupled from regional bourses in recent weeks after Chile's central bank announced a $12 billion currency intervention. Shares of industrial conglomerate Copec rose 0.6 percent, adding to gains over the previous two sessions.
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