EMERGING MARKETS-Europe debt worries drag Latam stocks down

* Brazil's Bovespa dips 1.49 pct, IPC 0.22 pct

* Investors still nervous despite Ireland bailout package

* Brazil stocks hit key resistance, stocks abroad fall (Updates to afternoon)

By Luciana Lopez and Caroline Stauffer

SAO PAULO/MEXICO CITY, Nov 22 (Reuters) - Latin American stocks followed global equities lower on Monday as a bailout package for Ireland failed to assuage fears over a European debt crisis and Brazilian stocks hit resistance.

The MSCI Latin American stocks index <.MILA00000PUS> slid 1.0 percent, tracking what could be its worst session in nearly a week.

Brazil's benchmark Bovespa index <.BVSP> lost 1.49 percent, giving up most of its gains from a three-session winning streak. The 23.6 percent Fibonacci retracement of the August rally has held for the past two sessions and could hold for a third.

An early bounce in global equities gave way to a rout as investors cooled on the possibility of a bailout for Ireland.

The country's deeply unpopular government began to unravel on Monday, with the junior coalition party demanding an early election in January, as soon as a European Union/International Monetary Fund bailout package is in place. [ID:nLDE6AL00M]

A bailout package could constrain future economic expansion in Ireland, particularly through strings attached to the funds, said economist Andre Perfeito of Gradual Investimentos in Brazil.

"European countries know that they need to make fiscal adjustments, but in a moderate way so that they don't compromise their futures," he said.

A number of speculators are also placing bets against perceived weak links in the euro zone, Perfeito added.

Analysts from Danske Bank wrote: "There is a significant risk that the market focus will now turn to Portugal, which had a government deficit of 9.3 percent of GDP last year and has failed to deliver the promised fiscal tightening this year."

Nevertheless, said Roni Lacerda, an equity fund manager at Mercatto Investimentos, "Brazil's economy remains solid so we prefer sectors linked to the domestic market," including retailers and construction companies.

Among stocks down in Sao Paulo were shares of mining company Vale , the world's largest producer of iron ore, which dipped 0.30 percent. Worries about possible steps by the China -- a major customer for Vale -- to cool price pressures in its economy have hit the stock recently. [ID:nTOE6AK01P]

Shares of state-controlled energy company Petrobras fell 1.48 percent, adding to losses in the previous session, as petroleum traded down .

Mexico's IPC index <.MXX> retreated 0.22 percent, possibly capping a three-session rally.

Shares of telecom giant America Movil dropped 0.21 percent and mining company Grupo Mexico retreated 0.31 percent.

Chile's IPSA index <.IPSA> edged up 0.19 percent after early time in negative territory.

Bank stocks fell in Santiago, with Banco Santander Chile sliding 1.4 percent.

Rival Banco de Chile traded nearly flat. The stock traded largely within the upper and lower boundaries of its 50- and 20-day simple moving averages, respectively. (Editing by Dan Grebler)