* EM stocks, currencies hit one-month low
* EM Asia debt metric hits April lows
* Cenbank meetings in U.S., Brazil, Turkey eyed this week
* Argentine peso falls after Fernandez reshuffles cabinet
By Susan Mathew
Sept 20 (Reuters) - Concerns over fallout from a possible
default by property developer China Evergrande sent emerging
market bonds into a downward spiral on Monday, while stocks and
currencies had their worst fall in a month.
Also hanging over emerging market assets were central bank
meetings this week including Brazil and Turkey and widely-
awaited clues on stimulus tapering from the U.S. Federal
Reserve.
Declines of between 0.2% and 0.8% for Latam currencies
deepened pain for MSCI's index of EM currencies.
Brazil's real stayed at four-week lows ahead of an
expected 100 basis points interest rate cut on Wednesday.
Shares in cash-strapped Evergrande hit decade
lows, while property stocks in Hong Kong were also hit on
Monday. The firm has begun repaying investors in its wealth
management products with real estate.
"As of right now, I don't see any systemic risk for the
global economy from the Evergrande situation," said David
Bahnsen, chief investment officer at The Bahnsen Group.
"But there doesn't need to be any systemic risk in order for
markets to be affected because there isn't enough clarity on how
Evergrande's challenges may affect the global economy and that
uncertainty is enough to spook markets."
The cost of insuring China against default rose to a near
one-year high, IHS Markit data showed.
As of last week, a metric of Asian high yield debt
had fallen to April lows, while the corporate bonds
counterpart touched June 2020 lows.
China markets were closed for a holiday.
Elsewhere, bonds in South Africa, Turkey, Sri Lanka, Costa
Rica and El Salvador bonds were all hit.
Among stocks, those in Chile sank almost 3%, while shares in
Brazil, South Africa and Poland lost
more than 2%, with Sao Paulo stocks hitting 6-1/2 month lows.
Those in Russia, Turkey and Mexico
were well in the red too.
The heavily-controlled Argentine peso fell about
0.2% after President Alberto Fernandez reshuffled his Cabinet on
Friday following a tug-of-war between more moderate and militant
factions within the government, which threatened to derail the
government coalition.
Key Latin American stock indexes and currencies at 1414 GMT:
Stock indexes Latest Daily %
change
MSCI Emerging Markets 1257.24 -1.73
MSCI LatAm 2264.88 -2.4
Brazil Bovespa 108936.46 -2.25
Mexico IPC 50842.65 -0.91
Chile IPSA 4354.18 -2.49
Argentina MerVal - -
Colombia COLCAP 1313.75 -0.61
Currencies Latest Daily %
change
Brazil real 5.3266 -0.75
Mexico peso 20.1496 -0.67
Chile peso 787.7 -0.67
Colombia peso 3829.74 -0.12
Peru sol 4.118 -0.44
Argentina peso 98.4600 -0.10
(interbank)
(Reporting by Susan Mathew in Bengaluru; Editing by Alexander
Smith)