EMERGING MARKETS-Latam stocks slide after Japan quake

* Main stock indexes retreat for second session

* Brazil Bovespa down 0.35, Mexico IPC 0.57 pct

MEXICO CITY/SAO PAULO, April 7 (Reuters) – Latin American
stocks fell on Thursday after an earthquake and tsunami warning
in Japan rattled global markets and investors booked profits on
strong recent gains in the region’s equities.

Jitters following the earthquake cut into a relief rally in
Brazil after the government did not impose any new taxes on
foreigners equity investments. Fears of such a measure drove
down stocks in the previous session. [ID:nN06227464]

The MSCI Latin American stocks index (.MILA00000PUS: Quote, Profile, Research) lost
0.29 percent, losing ground for the second day after hitting
its highest level since June 2008 on Tuesday.

The region’s stocks ended the first quarter on a strong
rally, but there are few signs that global investors are
willing to drive prices much higher.

Emerging markets outpaced gains in developed markets during
the recovery from the 2008 financial crisis. But investors
pulled funds out of emerging markets during most of the first
quarter as they eyed improving economic prospects in the United
States and Europe.

“Emerging markets are still much more expensive than U.S.
stocks, so I think this behavior of further flows into the
developed markets will continue,” said Alberto Bernal, head of
research at Bulltick Capital Markets in Miami.

News of another earthquake in Japan, the world’s
third-largest economy, made investors sell riskier assets like
stocks. Japan was hit by a massive quake and tsunami in March,
also sparking a crisis at a nuclear plant which still has not
been resolved. [ID:nL3E7F72Y2]

Latin America’s main stock indexes failed to break key
resistance levels in the previous session and retreated.

Brazil’s benchmark Bovespa stock index (.BVSP: Quote, Profile, Research) shed 0.35
percent as shares of iron miner Vale (VALE5.SA: Quote, Profile, Research) fell 1.04

Mexico’s IPC index (.MXX: Quote, Profile, Research) shed 0.57 percent as shares in
broadcaster Televisa (TLVACPO.MX: Quote, Profile, Research) lost 4 percent after news
that it would pay $1.6 billion to buy a 50 percent stake in
cell phone operator Iusacell, giving it a foothold in a market
dominated by billionaire Carlos Slim. [ID:nN0780591]

Chile’s IPSA index (.IPSA: Quote, Profile, Research) gave up 0.89 percent as retailer
Falabella fell 1.86 percent. The index lost ground for the
first time in seven sessions.

The IPSA’s relative strength index suggested stocks could
be overbought this week. The RSI is used in technical analysis
to gauge an asset’s momentum.
(Reporting by Michael O’Boyle in Mexico City and Silvio
Cascione in Sao Paulo; Editing by Andrew Hay)

EMERGING MARKETS-Latam stocks slide after Japan quake