Corrects Milestone of Local Stocks Benchmark in Bullet 4

** Brazil-Focused Exchange-Traded Product Ishares MSCI Brazil ETF Ewz.p Drops 2.9% to $25.7 in U.S. Premarket Trading

** After U.S. Markets Closed on Wednesday, Brazil's Government Proposed to Expand Income-Tax Exemptions for Lower-Income Brazilians and Increase Taxes on Those Who Earn More, While Outlining Plans to Trim Public Spending in Coming Years

** "Not Only Was Such an Announcement Ill-Timed, in Our View, for Competing With the Original Purpose of Focusing on Spending Curbs, but It Also Sparked Market Concerns That Congress Could Approve the New Tax Exemption More Quickly Than the Offsetting Measure on High Earners," Barclays Economists Write

** Brazil's Currency, the Real BRL=, Hit an All-Time Low of 6.02 per Dollar on Thursday, While the Local Stocks Benchmark .bvsp Sank to Its Lowest Level Since August Emrg/Frx

** Ewz Fell 3.6% on Wednesday in Lead up to the Announcement, Its Biggest Single-Day Decline This Year

** U.S. Markets Were Shut on Thursday for the Thanksgiving Holiday

(Reporting by Shashwat Chauhan in Benglauru)

((Shashwat.chauhan@Thomsonreuters.com))