EMERGING MARKETS-Latam stocks rise on easing euro zone fears

Wed Sep 7, 2011 6:01pm EDT

 * Latam stocks rise as euro zone debt crisis worries ease
 * Mexico's IPC up 2.15 pct, Chile's IPSA 2.49 pct
 * Brazil markets closed for national holiday
 (Updates for close, new quotes)
 By Rachel Uranga
 MEXICO CITY, Sept 7 (Reuters) - Mexican stocks climbed on
Wednesday as fears eased of a widening European debt crisis,
but analysts said further sharp gains were needed in the coming
sessions to overcome a downtrend.
 Germany's highest court rejected lawsuits on Wednesday
aimed at blocking participation in euro zone bailouts,
supporting gains in riskier assets such as stocks and emerging
market currencies. [ID:nL5E7K70Q9]
 The MSCI Latin American stock index .MILA00000PUS gained
0.87 percent. Brazil's Bovespa was closed on Wednesday for a
national holiday.
 Despite a two day winning-streak for Mexican stocks,
analysts said markets remained volatile as investors worried
the United States, its largest trading partner, could slip into
a recession without more economic stimulus.
 Mexico's IPC stock index .MXX jumped 2.15 percent to
35,179.59 points. Despite the big gain, analysts said stocks
would need to advance about 3 percent beyond 36,000 points in
the coming sessions to build up confidence in further gains.
 "The index had a very important comeback," said Carlos Gomez,
an analyst at Mexico City-based brokerage Invex. "Technical
indicators still have a negative bias and we have to see if the IPC
really has the force to break out of its downtrend."
 In Mexican trading, telecommunications giant America Movil
(AMXL.MX) added 1.45 percent and copper miner and railroad
company Grupo Mexico (GMEXICOB.MX) rose 3.2 percent.
 Investors were eyeing a Thursday speech by President Barack
Obama, who is expected to set out plans to improve the U.S. economy
and job creation.
 "There are expectations that the governments of Europe and the
United States will impose measures to support the economy," said
Jaime Ascencio, an analyst at Actinver, a Mexico City-based
brokerage.
 Market players remain wary of slowing global growth.
Political disagreements and reticent lawmakers could prevent
policymakers in Europe and the United States from coming up
with solutions to boost their economies.
 The ruling in Germany will still require Europe's largest
economy to get approval of its parliament's budget committee
before it can grant Greece and other debt-ridden countries aid.
For details, see [ID:nL5E7K70Q9]
 Argentina's MerVal .MERV stock index rose 2.1 percent while
Chile's blue-chip IPSA index .IPSA added 2.49 percent with shares
in industrial conglomerate Copec COP.SN up 4.0 percent and
retailer Cencosud CEN.SN ended 4.59 percent stronger.
 (Reporting by Rachel Uranga; Editing by Diane Craft)


FILED UNDER: