* Brazil government cuts taxes for homebuilders
* Share swings muted in day with few indicators
* Brazil Bovespa gains 0.18 pct, Mexico IPC flat
By Asher Levine
SAO PAULO, Dec 4 Brazilian stocks edged higher
on Tuesday, with shares of homebuilders rallying after Brazil's
government announced a payroll tax exemption for the sector.
Chile's bourse slipped its most in nearly two weeks
while Mexico's IPC index remained little changed.
Brazil's benchmark Bovespa index rose 0.18 percent,
driven by gains in homebuilders. Shares of PDG Realty SA
rose nearly 5 percent. Rivals Gafisa SA
and MRV Engenharia SA rose 5.6 percent and 5 percent,
The companies' shares rallied after Finance Minister Guido
Mantega announced the new tax break for the homebuilders on
Tuesday, in a move aimed at spurring a sluggish economic
"The market is reacting positively, as investors are always
keeping their eyes open for new measures from the government,
which is trying to revive growth," said Alain Oliveira, an
analyst with Futura Investimentos in Salvador, Brazil.
Brazil's economic recovery has been much slower than
expected, with government data on Friday showing Brazil's gross
domestic product expanded just 0.6 percent in the third quarter
compared with the second quarter.
Mexico's IPC index was little changed at 42,298.79 as a 0.75
percent gain by retail giant Wal-Mart de Mexico
helped offset a 0.4 percent fall in shares of telecommunications
firm America Movil.
Chile's IPSA index dropped 0.45 percent as retailer
Falabella and fertilizer, lithium and iodine producer
Soquimich both slipped 0.8 percent.
Latin America's key stock indexes at 1528 GMT:
Stock indexes daily % YTD %
Latest change change
MSCI LatAm 3,595.06 -0.13 -0.07
Brazil Bovespa 58,307.18 0.18 2.74
Mexico IPC 42,298.79 -0.06 14.08
Chile IPSA 4,139.86 -0.45 -0.90
Chile IGPA 20,323.04 -0.3 0.96
Argentina MerVal 2,470.13 2.08 0.30
Colombia IGBC 14,292.83 0.17 12.85
Peru IGRA 20,249.22 -0.21 3.98
Venezuela IBC 409,680.22 0.48 250.05