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EMERGING MARKETS-Mexico stocks jump as Fed stays on track

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Wed Jul 31, 2013 4:47pm EDT

* Federal Reserve shows no sign of tapering U.S. monetary
stimulus
    * Better-than-expected U.S. GDP growth also boosts Mexico
    * Brazil's Bovespa down 0.67 pct, Mexico's IPC up 1.49 pct


    MEXICO CITY, July 31 (Reuters) - Mexican stocks shot higher
on Wednesday, after a statement by the U.S. Federal Reserve
provided no indication that the bank would begin to phase out
its massive $85 billion a month bond-buying scheme in the near
future.
    At the conclusion of its two-day policy meeting, the Fed
said the U.S. economy was still in need of monetary support
despite its increasingly consistent recovery. 
    The stimulus has kept U.S. interest rates very low, driving
investor appetite for higher-risk assets like emerging market
stocks. A June statement by Fed Chairman Ben Bernanke that the
U.S. central bank would consider tapering the program had sent
Latin American markets tumbling.
    But on Wednesday, the Fed reiterated that it would keep
interest rates near zero as long as the U.S. unemployment rate
remained above 6.5 percent.
    
    * Mexico's IPC index rose 1.49 percent to close at
40,837.88 points, driven by a 1.66 percent rise in shares of
telecommunications giant America Movil, controlled by
billionaire Carlos Slim.
    * Investor sentiment was also helped by
stronger-than-expected second-quarter gross domestic product
data from the United States, the main market for Mexico's
exports.
    * Brazil's Bovespa lost ground for the third session
in a row, dropping 0.67 percent to close at 48,234.49 points. It
was dragged down by a 6.6 percent loss in realtor PDG Realty
. 
    * Chile's IPSA index fell by 0.42 percent to close
at 3,732.54 points, its fifth consecutive session of losses. The
index is on track to book its worst monthly performance since
May 2012.
    * Shares of potash producer SQM slid 5.96
percent, the largest contributor to the index's losses.
    
    Latin America's key stock indexes at 2021 GMT:
 Stock                       Latest        Daily     YTD pct
   indexes                                 pct       change
                                           change    
 MSCI Latam                  3,161.12      0.15      -16.89
                                                     
 Brazil Bovespa              48,234.49     -0.67     -20.86
 Mexico IPC                  40,837.88     1.49      -6.56
 Chile IPSA                  3,732.54      -0.42     -13.22
 Chile IGPA                  18,438.04     -0.43     -12.49
 Argentina MerVal            3,357.86      0.63      17.64
 Colombia IGBC               13,465.27     0.21      -8.50
 Peru IGRA                   15,118.46     -0.03     -26.71
 
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