Chile stocks post strong gains, peso rebounds

(Updates with closing market prices)

By Aaron Nelsen

SANTIAGO, Sept 3 (Reuters) - Chilean stocks advanced more than one percent on Thursday, rebounding on rising global bourses, while the peso closed stronger against the U.S. dollar, traders said.

Chile's blue-chip IPSA stock index .IPSA closed 1.43 percent higher at 3,191.64 while the all-market IGPA .IGPA rose 1.14 percent to 15,121.30.

"Today's market was characterized by low volumes, but positive, pulled up by the Dow Jones," said Cesar Perez-Novoa, executive director of Celfin Capital. "The best performing shares were in the retail sector, principally, Cencosud and La Polar. The electricity sector was also very active, especially in the case of Enersis."

The Dow Jones Industrial average .DJI closed up 0.69 percent on better-than-expected U.S. retail sales in August.

In local trading, retailer La Polar LAP.SN rose 2.95 percent to 2,382.50 pesos per share, while competitor Cencosud CEN.SN, one of Latin America's largest retailers, surged 3.43 percent to 1,472.90 pesos.

Chile-based regional energy group Enersis ENE.SN climbed 1.77 percent to 193.33 pesos.

The peso CLP=CL ended seven consecutive days of losses to close 0.96 percent higher at 552.70/553.20 per dollar compared to Wednesday's close of 558.00/558.50.

Chile's currency has risen 15.98 percent against the dollar so far this year after slumping 22.3 percent in 2008. (Reporting by Aaron Nelsen; Editing by Gary Crosse))