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EMERGING MARKETS-Brazil shares end 4-day run of gains, hit by weak China data

Ambar Warrick

(Updates prices, adds analyst quote) Sept 10 (Reuters) - Brazilian shares broke a four-day run of gains on Tuesday, mirroring declines in global stocks after weak China data fueled growth concerns, while currencies were tepid ahead of major central bank policy decisions. The Bovespa dropped 0.4%, easing off one-month highs as a handful of retailers fell on the news that U.S. online retail giant Amazon.com Inc will launch its Prime subscription service in the country. Magazine Luiza, Via Varejo and B2W fell between 4% to 6%, leading declines in the Bovespa. Major lenders including Banco Bradesco SA, Itau Unibanco Holding SA and Banco do Brasil SA dropped about 2% each after Brazil's government cut its annual inflation forecast, pointing to further monetary easing in Latin America's largest economy. The government also slightly raised Brazil's annual economic growth forecast. The MSCI's index of Latin American stocks retreated about 0.3%, with shares in Mexico and Colombia in the red after data showed China's producer prices shrank at the sharpest pace in three years in August, fueling fears of a global economic slowdown. Most currencies made slight moves against the dollar, as investors awaited the European Central Bank's monetary policy decision on Thursday, when it is expected to cut interest rates and restart an asset purchase program. Investors, however, are anxious about how far policymakers are willing to go to stimulate their slowing economies. "Global markets have taken on a subdued tone as investors look ahead to Thursday's crucial ECB policy meeting," Ned Rumpeltin from TD Securities wrote in a note. The Brazilian real pared early losses and traded sideways, with other currencies in the region moving in a similar range. The Mexican peso added about 0.2%. Finance Minister Arturo Herrera said state-oil firm Pemex is exploring opening a bidding process for public-private contracts in order to ensure the debt-laden firm has enough money to invest and manage its debt profile.

Latin American stock indexes and currencies at 1928 GMT:

Stock indexes Latest Daily %

change

MSCI Emerging Markets 1007.89 -0.27MSCI LatAm 2663.72 -0.34Brazil Bovespa 102807.52 -0.36Mexico IPC 42609.18 -0.12Chile IPSA 4880.60 0.41Argentina MerVal 28176.04 3.678Colombia IGBC 12768.22 -0.06Currencies Latest Daily %

change

Brazil real 4.0975 -0.02Mexico peso 19.5200 0.21Chile peso 711.55 0.41Colombia peso 3359.53 0.27Peru sol 3.343 0.18Argentina peso (interbank) 56.0000 0.04

(Reporting by Ambar Warrick and Sruthi Shankar in Bengaluru; Editing by Sandra Maler)