EMERGING MARKETS-Latam stocks edge up after slump, EU summit eyed

* Brazil delinquency data hits banks, retailers
* Brazil Bovespa edges up 0.06, Mexico IPC up 0.33 pct

By Danielle Assalve and Asher Levine
SAO PAULO, June 26 (Reuters) - Latin American stocks edged
up on Tuesday, bouncing back from a recent slump, but shares in
Brazil were held back by losses in banks and retailers after
data showed loan defaults hit a record high.
The MSCI Latin American stock index rose
0.33 percent. The index is still down about 5 percent in the
last five sessions due to concerns that Europe's deepening debt
crisis could further drag on a global slowdown.
Weighing on sentiment, data showed U.S. consumer confidence
fell in June to its lowest level in five months while Spanish
short-term borrowing costs nearly tripled.

Still, some held out hope that European leaders could
deliver plan at a summit later this week that might provide some
support to markets.
"The uncertainties in Europe keep influencing the markets
worldwide, and considering the data we have today, we can see
that the markets are almost still hoping for something new to
come from Europe," said Pedro Galdi, chief-strategist at
Brazil's SLW brokerage.
"In a scenario like that, we have a quite pathetic movement
in the stock market, with low volume as well. We are seeing a
technical adjustment today, nothing more," Galdi said.
Brazil's benchmark Bovespa index ended nearly flat,
up 0.06 percent, as bargain hunting lifted key commodity
companies after a four-day rout.
The Bovespa index has slumped nearly 5 percent in the last
five sessions and is heading back toward its lowest since
October, hit earlier this month.
The Bovespa closed at 53,836.57, just above a key support
level that has triggered bargain hunting in recent weeks.
"Investors need to be patient, this is not the time to
sell," said Marcio Cardoso, a director with brokerage Titulo
Corretora in Sao Paulo. Cardoso said for long-term investors,
recent falls may provide good opportunities, with shares of
companies like Petrobras at "very attractive" prices.
Banks and retailers fell after the central bank said the
country's loan delinquencies hit a record high in May. Banks may
need to set aside more funds for bad loan provisions, analysts
said.
State-controlled Banco do Brasil fell 2.36
percent, while clothing retailer Cia. Hering fell 7.7
percent, and Hypermarcas, the largest Brazilian maker
of disposable consumer goods, slipped 2.08 percent.
"As delinquency rises, that automatically reflects in fewer
purchases in stores," said Leonardo Zanfelício, an analyst with
brokerage Concórdia in Sao Paulo.
Preferred shares of state-controlled oil producer Petrobras
gained 1.12 percent, a day after the stock plunged
6.6 percent on investor disappointment with the size of a fuel
price hike and concern over the company's production plans.

Shares of iron-ore giant Vale rose 1.83 percent
after the company said late Monday it closed the sale of its
coal assets in Colombia for $407 million in cash.

Mexico's IPC index rose 0.46 percent, helped by a
2.23 percent gains in industrial conglomerate Mexichem
after the company said it sees its second quarter
sales up 45 percent versus the same period a year ago.

Chile's IPSA index ended nearly flat, off 0.06
percent.
Energy firm Endesa fell 0.97 percent a day after a
Chilean environmental commission suspended its $1.4 billion,
740-megawatt Punta Alcalde thermoelectric project.

Stock indexes daily % year-to
Latest change date %
change
MSCI LatAm 3,370.43 0.33 -6.44

Brazil Bovespa 53,836.57 0.06 -5.14

Mexico IPC 39,339.15 0.46 6.10

Chile IPSA 4,324.01 -0.06 3.51

Chile IGPA 20,778.80 -0.02 3.22

Argentina MerVal 2,276.42 -0.49 -7.56

Colombia IGBC 13,141.90 0.46 3.76

Peru IGRA 20,372.07 -0.27 4.62

Venezuela IBC 251,801.00 -0.41 115.15