Brazil's Bovespa Stock-Index Futures Decline on China Property Concern

Bovespa stock-index futures dropped on speculation China will step up property curbs in the Asian nation that is the biggest buyer of Brazil’s exports.

Banco do Brasil SA, Latin America’s largest bank by assets, may be active after O Estado de S. Paulo reported it is studying the purchase of a bank in Peru and may complete a transaction within weeks. Telemar Norte Leste SA, Brazil’s biggest fixed- line phone company, may move as it plans to sell $750 million of bonds maturing in 2020 as soon as today, according to a person familiar with the transaction.

Bovespa stock-index futures fell 0.7 percent to 66,780 at 8:29 a.m. New York time. The MSCI Emerging Markets index fell 0.6 percent yesterday, when Brazilian markets were closed for a holiday.

The real was little changed at 1.7265 per dollar, from 1.7267 on Sept. 6.

Reports that Chinese regulators will force lenders to boost reserves are negative for mid-sized banks, Morgan Stanley said. That added to investor concern following yesterday’s reports that euro region banks held more risky bonds than indicated by stress tests. The Federal Reserve releases its Beige Book business survey today, which may add to signs the U.S. economy is slowing.

To contact the reporter on this story: Alexander Ragir in Rio de Janeiro at aragir@bloomberg.net.

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