The MSCI Latin American stock index fell 1.14 percent to its lowest point in over a week. Brazil's benchmark Bovespa stock index dropped for a third consecutive day, taking its sharpest fall in more than two weeks as it fell below its 14-day simple moving average. The HSBC Purchasing Managers' Index, a leading indicator of China's industrial activity, fell for a fifth straight month in March. Meanwhile, manufacturing in both Germany and France also posted a sharper-than-expected contraction this month. Latin American stocks are sensitive to global investment flows tied to investors' risk appetite. A deteriorating global economy has forced some investors to take money out of emerging markets and stash it in safe-haven gold and US dollar-denominated assets. "Commodity prices continue to be the main concern with the slowdown of the Chinese economy dragging down prices," said Fabio Cardoso, a manager at Adinvest in Rio de Janeiro. In Brazil, the Bovespa closed down 1.54 percent at 65,828.19. The losses were led by a 2.07 percent decline in shares of mining major Vale and 1 .29 p ercent drop for state-run oil producer Petrobras. The companies are Brazil's largest and the exporters' revenues depend on the health of the global economy. Shares of top banks Itau Unibanco Holding, Brazil's largest private-sector lender, and No. 2 private bank Banco Bradesco, slid, falling 2.79 percent and 3.23 percent, respectively. After shedding 18 percent in 2011, the Bovespa has gained 16 percent so far this year thanks to a surge in investment inflows. Investors dropped emerging-market assets last year on fears that Europe's debt crisis could push the global economy back into recession. Adinvest's Cardoso expects the Bovespa eventually to rise to 73,000 this year, near its all-time high. In Mexico, the IPC index fell 0.29 percent to 38,323 points. The index, which had been trading in a narrow range, reached more than one-year highs during the last session, breaking past 38,400 points and prompting some analysts to see further gains ahead. "Touching new highs drives the index to a new objective of 38,900 points," said Mario Copca, an analyst at CI Casa de Bolsa in Mexico City. "Today that continues to be the scenario because despite the fall, we haven't reached minimums touched in a previous session." Mining giant Grupo Mexico fell 1.9 percent and cement maker Cemex lost 2.13 percent. Chile's IPSA stock index slipped 0.73 percent. Retailer Falabella dipped 0.90 percent and fertilizer, lithium and iodine producer Soquimich dropped 1.65 percent. Chilean construction firm Ingevec raised nearly $26 million in the Santiago stock exchange's first initial public offering of the year, falling short of expectations. Shares rose 4.3 percent compared with the morning's initial offer price. Ingevec is not trading on the IPSA stock index.