The Ibovespa fell the most among major stock gauges in the Americas as exporters including iron-ore producer Vale SA tumbled after data showed a decline in a measure of new credit in China, Brazil’s top trading partner.
Steelmaker Usinas Siderurgicas de Minas Gerais SA snapped a three-day advance as metal prices fell. Metalurgica Gerdau SA tumbled to a 10-month low. Grupo BTG Pactual slipped after Standard & Poor’s lowered the credit rating on its banking unit to junk. CCX Carvao da Colombia SA, the coal producer founded by Eike Batista, sank after reporting a 2013 loss.
The Ibovespa lost 2.2 percent to 50,454.35 at the close in Sao Paulo, with 68 of its 73 members lower. The real weakened 0.9 percent to 2.2336 per U.S. dollar at 5:23 p.m. local time. The Bloomberg Base Metals 3-Month Price Commodity Index fell 1.2 percent after China’s broadest measure of new credit declined 19 percent in March from a year earlier. Raw-material producers account for about a third of the Ibovespa’s weighting.
“Brazil depends a lot on commodity exports to China, so on a day like today you see equities erasing some of the gains seen in the past few weeks,” Alvaro Bandeira, a partner at Orama Asset Management, said by phone from Rio de Janeiro.
The Ibovespa has gained 12 percent from this year’s low on March 14 as state-owned companies including Centrais Eletricas Brasileiras SA rebounded amid speculation there will be a change in Brazil’s government after this year’s presidential election.
In China, policy makers are trying to curb credit growth and prevent defaults from spurring broader financial turmoil while meeting a target for economic expansion of about 7.5 percent this year. First-quarter growth in the world’s largest emerging market is projected to be the slowest since 2009 in a report due tonight.
Vale fell 4.5 percent to 27.87 reais. BTG declined 1.3 percent to 30.50 reais. Usiminas, as Usinas Siderurgicas is known, sank 3.9 percent to 9.01 reais. Metalurgica Gerdau retreated 3.3 percent to 16 reais.
CCX sank 4.4 percent to 86 centavos after reporting a 2013 net loss of 537.3 million reais, compared with a loss of 54.7 million reais in the prior year.
Trading volume of stocks in Sao Paulo today was 7.49 billion reais, according to data compiled by Bloomberg. That compares with a daily average of 6.61 billion reais this year, according to data from the exchange.