EMERGING MARKETS-Brazilian stocks slip as Spain worries weigh
* Brazil industrial output rises less than expected * Brazil Bovespa slips 0.59 pct; Mexico's IPC up 0.18 pct By Michael O'Boyle MEXICO CITY, Oct 2 (Reuters) - Latin American stocks traded mixed on Tuesday amid uncertainty over when Spain might apply for a bailout and after Brazil reported disappointing growth in industrial production. Brazil's Bovespa index slipped 0.59 percent to 59,222.08 points, hurt by a nearly 11 percent plunge in shares of airline Gol. The Bovespa has slipped about 4.6 percent since mid-September after a strong rally. Brazil reported that industrial production expanded by 1.5 percent in August compared with the previous month, the fastest pace in 15 months thanks to heavy government stimulus but below expectations for 2 percent growth. An economic slowdown in Brazil, Latin America's top economy, spurred steep losses in the country's equities earlier this year, and investors are still wary about signs of a rebound. "I think we need to string some more data together to say we have hit the bottom," said Geoffrey Pazzanese, who helps manage $720 million in global stocks at Federated Investors. Two weeks ago Brazil-focused funds saw their biggest inflows in two years. But new investments flagged last week, underscoring the lack of conviction in further gains. "I do not think we are going to see steady flows into Brazil until we see some stability in China," Pazzanese said. China is Brazil's biggest export market, and commodity exporters account for about two-fifths of the Bovespa. Comments from Spanish Prime Minister Mariano Rajoy that a request for European aid was not imminent also weighed on sentiment, traders said. Investors fear that a delay in a request for aid from Spain, which would allow the European Central Bank to buy its bonds, could further complicate the euro-zone debt crisis. "The stock market suffers with this uncertainty. The market will be skating along, waiting to see what happens," said analyst Hamilton Alves at BB Investimentos in Sao Paulo. The Bovespa slipped below its 200-day simple moving average last Friday, and the index has been unable to hold onto fleeting intraday gains above the measure in the last two sessions. Shares in OGX, the oil firm controlled by Brazilian billionaire Eike Batista, fell 3.17 percent while homebuilder Gafisa shed 8.31 percent. Gol fell 10.9 percent, erasing a big jump on Monday triggered by speculation it would sell a stake to a larger rival. Instead, after markets closed on Monday the company announced plans to order 60 new jets from Boeing Co. . Shares of Grupo Oi, Brazil's largest fixed-line carrier, jumped 4.21 percent after it agreed to dispose of 643 million reais ($317 million) worth of real estate property to reduce debt. Meanwhile, gains in Mexico and Chile helped lift the MSCI Latin American stock index by 0.2 percent. Mexico's IPC index rose 0.18 percent as shares in cement maker Cemex gained 1.01 percent and bank Banorte rose 0.61 percent, extending Monday's jump. In contrast to the recent dip in Brazilian stocks, the IPC has gained about 4.5 percent this month to close Tuesday about 1 percent off the all-time high hit in July. Chile's IPSA index gained 0.31 percent, supported by a 1.99 percent gain in shares of industrial conglomerate Copec . Latin America's key stock indexes at 2100 GMT: Stock indexes daily % year-to- Latest change ate % change MSCI LatAm 3,705.13 0.2 2.86 Brazil Bovespa 59,222.08 -0.59 4.35 Mexico IPC 41,199.29 0.18 11.12 Chile IPSA 4,245.39 0.31 1.62 Chile IGPA 20,626.17 0.3 2.47 Argentina MerVal 2,464.74 0.25 0.09 Colombia IGBC 14,211.93 0.79 12.21 Peru IGRA 21,674.79 -0.28 11.31 Venezuela IBC 340,996.16 7.65 191.36
DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.