EMERGING MARKETS-EM stocks fall the most in four months after German elections

elections@ SAO PAULO, Sept 25 (Reuters) - Emerging-market stocks on Monday posted their biggest daily loss in four months after elections in Germany sparked fresh concerns over the future of the Europe's economic integration. German Chancellor Angela Merkel secured a fourth term but saw support for her conservatives fall unexpectedly to the lowest level since 1949. Voters flocked to the anti-immigration Alternative for Germany (AfD), the country's first far-right party in parliament in more than half a century. ING Chief Economist Carsten Brzeski wrote in a report that the new parliamentary configuration posed "clear brakes and limits to deeper Eurozone integration." Uncertainty about Germany's role in Europe drove traders to dispose of riskier assets, such as emerging-market stocks and currencies, and rush for safe-haven assets. Latin American currencies suffered as a result, with MSCI's regional index falling the most in a day since May 18. Brazil's benchmark Bovespa stock index led the losses, dragged down by shares of miner Vale SA on the heels of falling China-listed iron ore futures. Shares of financial exchange operator B3 SA Brasil Bolsa Balcão fell the most in four months after analysts at Itaú BBA downgraded their recommendation on the stock to "market-perform" from "outperform". The Brazilian real weakened 0.8 percent, in line with a 0.9 percent decline by the Mexican peso and a 0.7 percent retreat by the Chilean peso. Demand for the U.S. dollar was bolstered by New York Fed President William Dudley's comments that the U.S. central bank is on track to gradually raise interest rates. Higher U.S. rates could drain capital away from emerging markets.

Key Latin American stock indexes and currencies at 1615 GMT:

Stock indexes daily % YTD % change change


MSCI Emerging Markets 1085.72 -1.5 27.83 MSCI LatAm 2937.38 -1.54 27.45 Brazil Bovespa 74496.93 -1.18 23.69 Mexico S&P/BVM IPC 50227.96 -0.17 10.05 Chile IPSA 5256.41 -0.63 26.62 Chile IGPA 26253.63 -0.58 26.62 Argentina MerVal 25059.38 0.26 48.12 Colombia IGBC 11092.33 -0.15 9.52 Venezuela IBC 421617.03 -0.3 1229.80 Currencies daily % YTD % change change


Brazil real 3.1522 -0.80 3.08 Mexico peso 17.9125 -0.91 15.81 Chile peso 629.31 -0.72 6.58 Colombia peso 2925.95 -0.75 2.58 Peru sol 3.258 -0.37 4.79 Argentina peso (interbank) 17.4350 -0.69 -8.95 Argentina peso (parallel) 17.93 0.11 -6.19

(Reporting by Bruno Federowski; editing by Diane Craft)