NEW YORK (CNNfn) - Latin American stocks were mostly weaker Monday, dragged down by continuing concerns about emerging markets around the globe. Canadian shares also fell.
Toronto stocks dropped on a weaker Canadian dollar and lower bank stocks.
"We've got a dollar-driven market once again," said Craig Strachan, research manager at TD Evergreen. "The only peg in the Canadian market has been interest-sensitives and that peg is on its way to being broken, so we're just getting selling among the interest-sensitives."
The Toronto Stock Exchange's key 300 Composite Index lost 45.38 points, or 0.72 percent, to end at 6,248.90.
Brazilian shares ended down 1.4 percent as an uncertain outlook for emerging market economies continued to weigh on local prices, brokers said.
"The latest political news from Russia was not very convincing. It was interpreted by the market as meaning that a solution for emerging markets is going to take a little more time," one trader said.
The blue chip Bovespa index lost 108 points to 7,655 in thin trade of $365 million. On Friday, it had plunged more than 10 percent, setting off the bolsa's circuit breaker.
By Monday's close, the index was down 25 percent so far this year.
Brokers said investors did not take heart from news that Russian President Boris Yeltsin replaced the prime minister and the entire cabinet to help the nation climb out of its economic quagmire.
"Investors here are afraid Brazil runs a similar risk. The biggest worries are that more dollars might leave the country if things get worse," one stock broker said.
Brazil's Central Bank reported that the country's forex market had suffered a huge one-day net outflow of $2.89 billion on Friday -- posting its largest net outflow since Oct. 28.
Mexican shares spiked upwards at the open but soon fell back and finished almost unchanged amid ongoing nervousness on emerging markets in Europe and Asia.
The Mexican IPC index shed 0.14 points to 3, 413.01.
Emerging market jitters emanating from an effective devaluation in Russia and volatility in Asia battered Latin American stock and currency markets last week and pummeled Mexico's floating peso to an historic closing low.
"We are seeing a great deal of caution given what is happening in Asia and Russia," one floor trader said earlier in the day.
In Venezuela, shares were virtually unchanged. Caracas' IBC index stocks picked up 1.27 points or 0.04 percent to 3173.56. 
-- from staff and wire reports
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