EMERGING MARKETS-Brazil stocks rise after Petrobras diesel hike
* Brazil Bovespa up 1.63 pct, Mexico IPC up 0.22 pct * Brazil cenbank likely to leave rates at record low * Petrobras leads gains on announced diesel price rise By Danielle Assalve SAO PAULO, March 6 (Reuters) - Brazilian stocks gained on Wednesday after state-led oil company Petrobras announced a surprise rise in diesel fuel prices that will help the firm tackle cash flow problems. Stocks around the world rallied on investor euphoria after the Dow soared to an all-time intra-day high on Tuesday, helped by bets central banks around the world will keep interest rates low to spur a global economic recovery. Brazil's benchmark Bovespa index rallied 1.63 percent, after closing negative on Tuesday. Brazil's central bank is likely to hold interest rates at an all-time low after markets close on Wednesday, but investors are looking for clues the bank may raise borrowing costs later this year to keep a lid on inflation. Shares of both classes of stock in Petroleo Brasileiro SA led gains on the Bovespa after the company announced late on Tuesday a 5 percent increase in the price of diesel, Brazil's most-used motor fuel. "That was really positive because the market has ruled out additional fuel price hikes for 2013," said João Pedro Brugger, an analyst at Leme Investimentos in the southern city of Florianópolis. "The announcement took the market by surprise." Preferred shares, the most common traded class of stock, rose 5.86 percent while common shares jumped 12.14 percent to 15.98 reais, posting their highest level in a month and biggest daily gain since Nov. 2007. "Any increase in the price of diesel or gasoline is extremely positive for Petrobras," said Oswaldo Telles, an analyst at Espírito Santo Investment Bank in a report. "It's a direct increase in revenue without any additional costs." Further boosting gains in Sao Paulo, bourse operator BM&FBovespa SA rose 1.42 percent after saying on Tuesday it would cut trading fees and review custody pricing in preparation for more foreign rivals to enter the exchange. Though Mexico's bourse gained, shares in Wal-Mart de Mexico , the country's biggest retailer, limited gains. They fell 0.4 percent the day after the company reported sales were down 1.9 percent in February. Mexico's IPC index was up 0.22 percent at 44,113, while Chile's IPSA index fell 0.51 percent to 4,546.24. Latin America's key stock indexes at 1500 GMT: Stock Latest daily % YTD % change indexes change MSCI LatAm 3,845.35 0.97 0.28 Brazil Bovespa 56,863.08 1.63 -6.71 Mexico IPC 44,113.64 0.22 0.93 Chile IPSA 4,546.24 -0.51 5.69 Chile IGPA 22,210.13 -0.39 5.41 Argentina MerVal 3,227.49 1.07 13.08 Colombia IGBC 14,629.05 -0.09 15.50 Peru IGRA 20,393.81 -0.26 -1.14 Venezuela IBC 618,486.75 -0.05 31.19
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