EMERGING MARKETS-Latam stocks up on stimulus hopes, Mexico hits record

* Brazil Bovespa up 4.72 pct, Mexico IPC up 1.2 pct
* Shares of Enersis limit Chile's IPSA gains
* Stimulus could further lift Latam shares

By Danielle Assalve and Rachel Uranga
SAO PAULO/MEXICO CITY, July 27 (Reuters) - Brazilian stocks
soared and Mexican shares hit record highs on Friday on growing
signs that U.S. and European policymakers are readying measures
to stimulate their economies, a move that could boost foreign
investment in riskier assets.
The MSCI Latin American stock index leapt
3.33 percent after Bloomberg reported that European Central Bank
President Mario Draghi would meet Bundesbank President Jens
Weidmann to discuss several measures, including bond purchases,
to help the euro zone.
Investors said such a move could help ease high borrowing
costs of Spain and Italy. This would reduce risk aversion and
drive investors to emerging markets.
"This takes away the fear of default in these regions and it
is strengthening stocks," said the director of Mirae Asset
Securities, Pablo Spyer, in Sao Paulo.
But there were no details on what Draghi would propose and
a spokeswoman for the ECB said it was usual practice for Draghi
to meet with Governing Council members. The spokeswoman declined
further comment.
The report came after German Chancellor Angela Merkel and
French President Francois Hollande pledged to do all in their
power to protect the euro encouraging investors to buy risky
assets such as commodities, emerging market stocks and
currencies.
Mining giant Vale and Brazil's state-led oil
producer Petrobras drove Brazil's Bovespa index
higher, while gains in Chile's IPSA index were
limited by energy company Enersis which fell 3.59
percent.
Bets that the U.S. Federal Reserve would deploy additional
stimulus measures were also on the rise after data showed the
U.S. economy slowed in the second quarter as consumers spent at
their slowest pace in a year.
"If (the ECB's actions) turn out, it should significantly
support the market. This can actually reverse the pessimism in
the markets," said Andre Perfeito, chief economist at brokerage
Gradual.
Brazil's Bovespa index jumped 4.72 percent, the sharpest
single day jump since August 2011. The Bovespa closed the week,
up 4.3 percent, clocking its best week in six months. Lifting
the index, shares of oil giant Petrobras climbed 4.72 percent
and Vale, the world's largest iron ore producer, gained 3.98
percent as they extended a recovery seen late on Thursday.
Vale's shares initially fell as much as 3 percent in the
previous session after the company reported its worst quarterly
results in two years. They managed to close in the black,
however, as the company sought to reassure investors it was
well-positioned to weather a slowdown in Chinese demand.

MEXICO HITS RECORD HIGH
Mexico's IPC stock index jumped 1.22 percent, breaking
records to reach a new high at 41,476.48.
The IPC has risen more than 11 percent since the beginning
of June. Analysts say Mexican shares are expensive but that they
could continue to see a boost next week if stimulus measures
emerge.
Mexican retailer and beverage company Femsa
also advanced 2.4 percent after announcing its second-quarter
profit had risen 37 percent, boosted by higher sales at bottler
Coca-Cola Femsa as well as its convenience store
chain.
America Movil dropped 0.22 percent after quarterly
profits fell sharply, having taken a big hit from foreign
exchange losses and rising costs.
A slowdown in Brazil's economy, where America Movil has
also focused operations, and increased regulatory scrutiny has
hurt growth there and worried investors, said Alik Garcia, an
analyst at brokerage Intercam in Mexico City.
In Chile, the blue-chip IPSA index was down 0.44 percent as
shares of Enersis sank nearly 3.59 percent. The
regional energy company sold off for a second day on concerns
about a planned capital increase of up to $8.02 billion, the
largest in the Andean nation's history.

Latin America's key stock indexes at 2055 GMT:

Stock indexes daily % year-to-d
Latest change te %
change
MSCI LatAm 3,639.90 3.33 1.04

Brazil Bovespa 56,553.12 4.72 -0.35

Mexico IPC 41,476.48 1.22 11.86

Chile IPSA 4,254.32 0.44 1.84

Chile IGPA 20,560.60 0.3 2.14

Argentina MerVal 2,435.96 0.1 -1.08

Colombia IGBC 13,858.17 2.73 9.41

Peru IGRA 19,822.53 0.75 1.79

Venezuela IBC 245,028.27 0.24 109.36