Fernandez

The office of Argentine President Cristina Fernandez says she plans to propose nationalising nearly US$30 billion in private pension funds.

The pension funds are invested in stocks and bonds, and the government says it needs to step in to protect citizens' money amid the falling profits triggered by the international financial crisis.

Argentine equities plunged after the announcement. The Merval index in Buenos Aires tanked by 10.5 per cent to 1,052 in intraday trading.

The plan must be approved by Argentina's Congress, where Fernandez's Peronist party has a majority.

Top opposition leader Elisa Carrio says her Civic Coalition party will oppose the measure since the government only wants to "loot" pensioners' funds.

Stocks down

Argentine bonds dropped sharply prior to Tuesday's announcement.

Across Latin America, stocks were mostly down Tuesday on renewed concerns of a global slowdown and Argentina's nationalisation plan.

Brazil's Ibovespa index opened nearly three per cent lower but recovered some of the lost ground and was down 1.6 per cent to 38,819 in midday trading.

Brazil's currency, the real, was down to 2.2 to the US dollar compared to 2.1 a day earlier.

Mexico's IPC index fell 1.8 per cent to 20,415 and Colombia's IGBC was down 0.1 per cent at 7,679. Chile's IPSA was up 0.1 per cent to 2,548.

The losses came a day after all markets except Argentina's registered strong gains, giving them their biggest rebound in weeks.

Investors fear that the region's companies could be hit particularly hard by slowing global demand for Latin America's commodities - including agricultural goods, minerals and oil.

Chilean President Michelle Bachelet attempted to calm jitters on Tuesday, urging businesses "to act with sensitivity, with social responsibility, not to fall into alarmism" and to protect jobs.

She acknowledged that the global crisis will hit Chile, but said her government "will continue to take all measures necessary to cushion and lessen the effects of the crisis."

- AP