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Latin American Currencies Sink to 22-Year Low as Stocks Tumble

  • Colombian peso drops most since 2008, leading global losses
  • More than half of Ibovespa's stocks decline to 52-week lows
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Market Rout Deals Emerging Assets a Violent Blow

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Latin American currencies slid to a 22-year low and stocks joined a global selloff on speculation that the region’s economic contraction will deepen as Chinese growth slows down.

The Bloomberg JP Morgan Latin America Currency Index sank to the lowest since at least November 1992 as Colombia’s peso dropped the most in six years. The MSCI gauge for the region’s shares fell 3.9 percent, led by Brazilian miner Vale SA and oil producer Petroleo Brasileiro SA. More than half of the companies in the Ibovespa, which is in a bear market, have tumbled to at least one-year lows in the past week. Mexico’s peso weakened to a record, and the nation’s shares are at a so-called technical correction after plunging more than 10 percent from their September peak.