* Investors optimistic over U.S. fiscal deal
* Chile's IPSA index posts biggest gain in three weeks
* Brazil Bovespa rises 0.94 pct, Mexico IPC up 0.38 pct
By Asher Levine and Danielle Assalve
SAO PAULO, Nov 29 Latin American stocks gained
on Thursday as optimism that U.S. political leaders may avert a
fiscal crisis fed demand for riskier assets, with Chile's bourse
posting its biggest rise in three weeks.
Stocks rose after both U.S. President Barack Obama and House
Speaker John Boehner expressed hope on Wednesday that a deal
could be reached to avert the so-called "fiscal cliff" of
automatic spending cuts and tax increases that could throw the
U.S. economy into recession.
Brazil's benchmark Bovespa stock index rose for the
second straight session, adding 0.94 percent to 57,069.27.
Widely traded stocks, whose performance tend to track global
risk appetite, gained, with preferred shares of state-controlled
oil producer Petrobras and iron-ore mining giant Vale
both up nearly 2 percent.
"We still see room for the Bovespa to go higher, but it is
rangebound for now because the market is hanging on (U.S. budget
talks)," said Illan Besen, an equities specialist at ICAP Brasil
in Rio de Janeiro.
Electric utilities fell, with Centrais Eletricas Brasileiras
SA, known as Eletrobras, down nearly 6 percent after
a four-day rally. Investors are still looking for a stable price
for the stock after concerns over the impact of a government
concession-renewal plan sent shares tumbling this quarter.
Shares of Brazilian logistics firm LLX,
controlled by billionaire Eike Batista, soared over 13 percent
after the company said on Wednesday that General Electric
signed a contract with the firm to install a plant at its Acu
port in Rio de Janeiro state.
"LLX had fallen quite a bit so it's natural to see a sharp
gain on this news given how low it was trading," Besen said.
Chile's IPSA index notched its biggest gain in over
three weeks as shares of airline Latam rose 1.6 percent
and lender Santander Chile climbed 0.6 percent.
A technical indicator known as the relative strength index
remained in "oversold" territory, indicating Chilean stocks may
be due to rally in coming sessions.
Mexico's IPC index rose for the second straight
session, with shares of telecommunications firm America Movil
, controlled by billionaire Carlos Slim, up 0.38
percent and those of conglomerate Alfa rising 1
Latin America's key stock indexes at 1435 GMT:
Stock indexes daily % YTD %
Latest change change
MSCI LatAm 3,565.47 0.29 -1.31
Brazil Bovespa 57,069.27 0.94 0.56
Mexico IPC 42,070.50 0.38 13.47
Chile IPSA 4,122.99 0.24 -1.31
Chile IGPA 20,272.73 0.19 0.71
Argentina MerVal 2,373.78 1.98 -3.61
Colombia IGBC 14,099.52 0.46 11.32
Peru IGRA 20,127.68 0.27 3.36
Venezuela IBC 403,983.53 0 245.18