EMERGING MARKETS-Mexico stocks up on US fiscal talk hopes
* Chile's Cencosud jumps on Colombian store acquisition plan * Mexico's IPC up 0.87 pct, Chile's IPSA down 0.3 pct By Michael O'Boyle MEXICO CITY, Nov 20 (Reuters) - Mexican stocks rose on Tuesday as optimism on fiscal negotiations in Washington drove bets of solid demand in the United States, Mexico's top trading partner, and buoyed shares with the most exposure to the U.S. economy. Mexico's IPC stock index rose 0.87 percent to 41,184 points after being closed on Monday for a holiday, catching up to Wall Street's gains after U.S. lawmakers over the weekend suggested they could reach a deal to stave off the looming series of tax rises and spending cuts that are to begin to take effect in the new year. "They will reach a deal, and I like the market now," said Gerardo Roman, head of trading at brokerage Actinver in Mexico City. Mexican stocks rose for a second consecutive session after reaching a more than six-week low last week. Shares of conglomerate Alfa, which controls auto-parts subsidiary Nemak, jumped 4.1 percent to hit a record closing high. Mexican auto exports posted a record high in October. Top U.S. cement supplier Cemex gained 4.34 percent, after the U.S. government reported that housing starts hit a more than four-year high in October. After being pushed to near bankruptcy by the U.S. housing market collapse, Cemex is seen returning to profitability next year, according to four of six analysts polled by Reuters. Mexico sends nearly 80 percent of its exports to the United States and could suffer the most among Latin America's economies if a fiscal impasse were to slow U.S. growth. But so far, stronger-than-expected U.S. demand has supported Mexico in a wider global slowdown. The IPC is trading about 4 percent off its record high and has been the second best-performing Latin American stock market behind Colombia in 2012. Brazil, Latin America's biggest stock market, was closed for a holiday. On Monday, Brazil's Bovespa index climbed back above an important support at 56,200 that eroded last week after the index shed more than 5 percent since Nov. 4. If investors do not enter the market on strong volume and drive a rebound, stocks may be headed back to this year's low, nearly 8 percent down from current levels, chart watchers said. Chilean stocks <.IPSA > slipped 0.27 percent on Tuesday as energy firm Enersis fell 2.27 percent. Shares in Chilean retailer Cencosud rose 2.09 percent after shareholders on Tuesday approved a $1.5 billion capital increase destined for the purchase of French retailer Carrefour's Colombian assets. Latin American stock indexes at 2121 GMT Stock indexes Daily Year-t pct -date Latest change pct change MSCI LatAm 3,553.93 0.02 -1.36 Brazil Bovespa 56,450.86 Closed -0.53 Mexico IPC 41,184.00 0.87 11.08 Chile IPSA 4,179.70 -0.27 0.05 Chile IGPA 20,541.98 -0.23 2.05 Argentina MerVal 2,295.59 0.01 -6.78 Colombia IGBC 14,152.28 0.00 11.74 Peru IGRA 20,191.70 -0.57 3.69 Venezuela IBC 383,877.5 -0.02 228.00
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