The MSCI Latin American stock index fell for a second session in three, dropping 0.87 percent to 4,189.53. Commodities producers drove losses in Brazil's benchmark Bovespa index, while homebuilder Urbi led Mexico's IPC lower. Shares fell after data showed retail sales in the United States rose less than expected in January as consumers in the world's largest economy cut back on car purchases and shopped less online. "Today the fall in retail sales reduced risk appetite among investors on a global level, which is translating into a fall in emerging markets equities," said Andre Perfeito, who helps manage 2 billion reais ($1.17 billion) as chief economist with Gradual Investimentos in Sao Paulo. "Still (today's losses) are not deep, and they don't suggest a break in the positive perspective for the market in 2012," he added. Brazil's benchmark Bovespa stock index fell for a third session in four, dropping 0.45 percent to 65,396.21. Preferred shares of state-controlled oil producer Petrobras fell 1.81 percent, driving the index lower, after it reduced its estimate for new oil output in Brazil in 2012 on Tuesday. Shares of state-controlled lender Banco do Brasil limited losses in the index, rising 3 percent, after the nation's biggest bank by assets posted better-than-expected fourth quarter profits. Brazil's equities market, despite recent gains, will continue to rise alongside additional foreign inflows, Perfeito said. "While there is still risk aversion, no one is looking to just 'not lose' money. Foreign investors are looking for bargains, and Brazil is offering them a great opportunity for that," he said. Mexico's IPC index posted its biggest intraday loss since late January, falling 0.37 percent to 38,062.30. Homebuilder Urbi led losses in the index, falling 11.58 percent, as the company reported weaker-than-expected results for 2011. Cement manufacturer Cemex fell 0.55 percent after Mexico's competition watchdog fined the company 10.2 million pesos ($800,500) for anticompetitive practices. Chile's IPSA index gained 0.15 percent to 4,440.41, and its relative strength index remained in "overbought" territory for a ninth session, suggesting recent gains may be limited. Regional energy group Enersis led the index higher, adding 0.9 percent, and industrial conglomerate Copec rose 1.4 percent.