EMERGING MARKETS-Mexico stocks surge on reform buzz, Brazil up

Wed Nov 27, 2013 7:15pm EST

MEXICO CITY Nov 27 (Reuters) - Mexican stocks climbed sharply to a 10-week high on Wednesday after lawmakers approved a bill that will make it easier for banks to go after delinquent creditors and investors bet Congress would soon pass an energy reform.

Stocks in Brazil, meanwhile, rose off a nearly three-month low as banking shares gained on expectations a Supreme Court ruling that could lead to huge losses for the industry would be delayed.

* Mexico's IPC stock index added 2.12 percent to 41,872.59 points in its biggest one-day percentage jump in two months and closing at its highest level since mid-September.

* Mexican lawmakers late on Tuesday approved a bill designed to boost lending in Latin America's second-largest economy by making it easier for banks to collect on guarantees for bad loans while also beefing up regulatory power over financial firms.

* Shares in bank Banorte rose 2.07 percent while billionaire Carlos Slim's financial ground Inbursa added 3.97 percent. Microlender Gentera jumped 4.42 percent.

* Lawmakers could soon move onto legislation to open up the state-run energy sector to more private investment. Petrochemical firm Alpek climbed 4.39 percent while industrial conglomerate Mexichem rose 2.97 percent.

* Mexican stocks were also supported by bets a nascent economic recovery is gaining some steam. Data showed Mexican factory exports rose in October in a sign of strengthening U.S. demand.

* Brazil's benchmark Bovespa stock index halted a two-day losing streak, rising 0.81 percent to 51,861.21.

* Shares of Ita├║ Unibanco Holding SA, Brazil's largest non-government bank, rose 2.66 percent, while state-controlled rival Banco do Brasil SA added 2.34 percent.

* Investors are betting the country's Supreme Court will request more time to analyze a legal case that could hurt banks.

* State-run and private-sector lenders have been accused of failing to remunerate account holders properly during the implementation of inflation-fighting monetary plans in the late 1980s and early 1990s. The sector could be forced to pay as much as 150 billion reais ($65.2 billion) in compensation, according to central bank estimates.

* Recent media reports suggested some of the Supreme Court justices, known as ministers, have been swayed by recent lobbying efforts by former and current government officials to delay the ruling.

* Shares of iron-ore mining giant Vale SA was up 1.88 percent, with analysts citing bargain-hunting after a two-day, 5.5 percent drop.

* Chile's IPSA index rose its most in over a week, adding 1.23 percent to 3,716.92 as Latam Airlines gained 3.57 percent after the company said it expected operating margins and profitability to improve in 2014.