Mexican stocks moved lower in early trading on Thursday, following the sudden drop in U.S. markets after a strong earthquake was reported in northern Japan.Stocks had been down more moderately earlier as positive U.S. jobs data and retail sales were offset by caution over Europe's commitment to interest-rate increases, and on the continued stock slide of local broadcaster and market heavyweight Televisa (TV,TLEVISA.MX).Following the quake news, the IPC index of leading issues was down by 0.5% at around 10:50 a.m. EDT on volume of 43.9 million shares valued at 1.62 billion pesos ($139 million).
The market had rallied in the latter part of March, but was down on the week so far.Televisa, Mexico's biggest broadcaster and the world's largest producer of Spanish-language TV programming, had its CPO shares sliding by 4% to MXN54.43 as it confirmed a deal to invest $1.6 billion for a 50% stake in mobile phone operator Grupo Iusacell.Televisa's stock began its slide since the company confirmed talks with Iusacell on Tuesday.The USGS reported the quake as magnitude 6.5 but later revised the figure to 6.2, also moving the epicenter slightly.The Pacific Tsunami Warning Center had no warning or advisory in place and hotels in beach resorts like Puerto Angel also reported no damage.Tremors awoke residents in Mexico City nearly 300 miles to the north, and cut power in some districts.
Some people filed onto the street in their pajamas, but there were no reports of casualties in the city, where many have grim memories of a devastating earthquake in 1985.Power and phone connections were still working.
Mexico is regularly shaken by tremors and nerves are strained since devastating earthquakes in Haiti and Chile earlier this year.(Additional reporting by Armando Tovar, Pablo Garibian, Cyntia Barrera, Patrick Rucker and Adriana Barrera; Writing by Catherine Bremer; Editing by Alan Elsner and Doina Chiacu)
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