EMERGING MARKETS-Brazil stocks end at 2-1/2-week high, Mexico dips
* Shares in Eletrobras bounce after slump to 18-year low * Brazil Bovespa gains 2.01 pct, Mexico IPC drops 0.27 pct By Michael O'Boyle and Asher Levine MEXICO CITY/SAO PAULO, Nov 23 (Reuters) - Brazilian stocks jumped on Friday to close at a 2-1/2-week high, boosted by optimism about a Greek debt deal and economic data from Germany, while Mexican stocks slipped following a four-day rally. Brazil's benchmark Bovespa stock index rose 2 percent as it capped it best week since mid-September with a 3.9 percent gain. However, volume was thin due to a local holiday earlier in the week as well as the U.S. Thanksgiving holiday. China factory sentiment in November earlier pointed to growth for the first time in 13 months, which raised hopes that an economic slowdown has hit bottom in Brazil's biggest trading partner. China is a major consumer of Latin American raw materials, such as iron, copper and oil. "It seems that China is turning a corner into positive territory," said Manuel Lasa, head of stock trading at brokerage Interacciones in Mexico City. "If that is the case, then Brazil could benefit." Brazilian stocks have lagged behind sharp gains in Mexico and Colombia, which have deeper economic ties to the United States, where growth has held up despite a wider global slowdown. Stocks worldwide received a boost after data on Friday showed German business sentiment rose in November and Greece's finance minister said the heavily-indebted country was close to securing a critical aid package. In Brazil, shares of state-controlled oil company Petrobras added 2.79 percent while iron ore miner Vale gained 1.38 percent. Shares of electric utility Eletrobras soared 5.48 percent, rebounding after slumping about 50 percent this month to their lowest level in 18 years. Eletrobras shares sank on concerns that the government will force it to cut power rates as the government seeks to boost growth by lowering energy costs. Brazil's government has ruled out injecting fresh capital into the company, a local newspaper reported on Friday. Brazil's Bovespa has struggled to remain in positive territory for the year amid investor concerns over heavy government intervention in private-sector enterprises such as telecoms, electricity concessions and banks in recent months. "Investors are not comfortable positioning themselves in the Bovespa for next year," said Andre Perfeito, chief economist with Gradual Investimentos in Sao Paulo. Mexico's benchmark IPC stock index dipped 0.27 percent after clocking its best four-day run since June, with a 3.6 percent gain in the last four sessions. Mexican stocks got a recent boost as investors turned more optimistic about fiscal negotiations in the United States, Mexico's top trading partner. But stocks could be vulnerable to doubts once talks between lawmakers start up again next week. "This is going to be a complicated and drawn-out process, and this could create uncertainty in the markets," said Arturo Espinosa, an analyst at Santander in Mexico City. The recent surge in Mexican stocks has also pushed prices closer to record highs, raising concerns that local equities prices have become too expensive. "I do not see the room for a strong rise from here. America Movil is looking very heavy," said Fanuel Fuentes, an analyst at brokerage Monex in Mexico City. Shares of billionaire Carlos Slim's America Movil slipped 0.44 percent. The stock accounts for more than 20 percent of the IPC. The rally in Mexican stocks this week helped lift America Movil off of a nearly eight-month low, but analysts said further gains would be limited due to concerns that the pace of revenue and profit growth is slowing in Latin America's biggest mobile phone and pay TV operator. Shares of plastic pipe maker Mexichem dropped 1.83 percent after the company said on Thursday it was abandoning plans for a joint venture with national oil company Pemex due to continued delays by the state-run giant. Chile's IPSA index edged higher 0.09 percent back from its lowest since early September. Shares of regional energy group Enersis rose 2.16 percent after the company said late Thursday that it will hold a meeting with shareholders of its Chilean private pension fund to discuss a controversial capital increase. Latin American stock indexes at 2222 GMT: Stock indexes Latest Daily Year-to-date pct pct change change MSCI Latam 3,603.26 1.09 0.03 Brazil Bovespa 57,574.03 2.01 1.44 Mexico IPC 41,919.55 -0.27 13.06 Chile IPSA 4,143.25 0.09 -0.82 Chile IGPA 20,365.27 0.05 1.17 Argentina MerVal 2,339.92 4.34 -4.98 Colombia IGBC 14,201.02 0.08 12.12 Peru IGRA 20,227.74 0.94 3.87 Venezuela IBC 384,906.1 -0.34 228.88
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