EMERGING MARKETS-Latam stocks rise on China GDP data, Petrobras

* China economic growth in line with expectations
* Petrobras shares jump on diesel price hike
* Brazil Bovespa gains 1.7 pct, Mexico IPC up 0.57 pct

By Rachel Uranga and Danielle Assalve
MEXICO CITY/SAO PAULO, July 13 (Reuters) - Latin American
stocks gained o n F riday after Chinese GDP data sparked hope for
more government stimulus in the world's second- largest economy,
pushing Mexico's IPC stock index to record highs.
But analysts said Mexico's gains could be short-lived with
the global economic outlook still gloomy and many shares bumping
up against their limit.
China's growth rate fell to its slowest pace in more than
three years in the second quarter but was in line with
expectations, alleviating concern of a more profound slowdown.
The weak growth also sparked bets Chinese policymakers could
take action to stimulate the economy, sweetening sentiment among
market players.
The MSCI Latin American stock index jumped
2.04 percent to 3,531.28, while Mexico's IPC index
rallied for a fifth straight session.
Hope for continued demand from the Asian giant lifted
Brazil's benchmark Bovespa stock index 1.7 percent.
China is Brazil's No.1 trading partner and a key consumer of
Latin American raw materials exports such as iron ore, soy,
petroleum and copper. With the exception of Mexico, commodities
make up more than 60 percent of exports in all major Latin
American economies.
Raw materials exporters, such as mining giant Vale
and oil firm OGX, were among top gainers
that helped snap a four-session losing streak with the index
logging a weekly loss of 1.9 percent.
Petrobras preferred shares jumped 5.22, contributing the
most to the index's gains, after the state-controlled oil
producer announced plans to raise diesel fuel prices at
refineries by 6 percent late on Thu rsday.
Brazilian shares declined 1.9 percent for the week and
analysts expected more turbulent times ahead with Brazil's soft
economy weighing on shares.
"I'm not very optimistic for the rest of second-quarter
reports. The industrial production data, for example, came in
very poor and was very disturbing," said Aloisio Lemos, analyst
at Agora Brokerage in Rio de Janeiro. "With this scenario we can
imagine that corporate results are not very good. "
Mexico's IPC index rose 0.57 percent to 40,498.47 and
clocked about a 1.5 percent rise for the week.
"The majority of shares are in overbought territory," said
an analyst for Citi in Mexico City. "We are in a period of
caution and expect an adjustment that could bring a sell-off."

Telecommunications firm America Movil, controlled
by billionaire Carlos Slim, rose 0.86 percent, leading gains in
the index, while cement manufacturer Cemex added
2.73 percent.
Chile's IPSA index rose 0.39 percent, with shares of
power producer Endesa up 1.14 percent and bank Banco de
Chile up 1.32 percent. The index declined about 0.9
percent for the week.

Latin America's key stock indexes at 21:45 GMT:

Stock indexes daily % year-to
Latest change date %
change
MSCI LatAm 3,531.28 2.04 -1.97

Brazil Bovespa 54,330.51 1.7 -4.27

Mexico IPC 40,498.47 0.57 9.23

Chile IPSA 4,372.67 0.39 4.67

Chile IGPA 20,984.84 0.37 4.25

Argentina MerVal 2,381.38 1.29 -3.30

Colombia IGBC 13,664.64 1.16 7.89

Peru IGRA 20,107.13 0.76 3.25

Venezuela IBC 249,226.94 0.21 112.95