December 14, 2012 / 11:31 PM / 5 years ago

EMERGING MARKETS-Latam stocks rise on China factory pickup

3 Min Read

* China manufacturing grows at fastest pace in 14 months
    * Brazil Bovespa gains 0.49 pct; Mexico IPC up 0.1 pct


    By Danielle Assalve
    SAO PAULO, Dec 14 (Reuters) - Stocks in Latin American
mostly rose on Friday on data showing a surge in factory
activity in China, a key consumer of the region's raw materials,
but uncertainty over the outcome of U.S. budget negotiations
kept markets in check.
    Brazil's benchmark Bovespa index rose 0.49 percent
after data showed that China's vast manufacturing sector
expanded in December at its fastest pace in 14 months, lifting
the outlook for commodities producers.
    Iron ore giant Vale jumped 3.17 percent while
state oil firm Petrobras rose 3.27 percent. China is
Brazil's top trading partner. 
    Mexico's IPC index gained 0.1 percent, mostly on a
2.56 percent gain in copper miner Grupo Mexico.
    "The Chinese data encouraged investors a little, but risk
aversion still prevails," said Eduardo Velho, chief economist
with Planner brokerage in Sao Paulo.
    "Investors will likely remain cautious while there are no
clear signs of progress in the negotiations to avoid the 'fiscal
cliff' in the United States," he added.
    In the past few days, frustration over a lack of progress in
U.S. budget negotiations has driven investors increasingly to
the sidelines.
    They fear that growth in the world's largest economy could
be derailed next year if U.S. lawmakers fail to agree on a plan
to avoid the "fiscal cliff" of steep spending cuts and tax hikes
that are scheduled to begin taking effect in 2013.
    Mexican retailer and beverage company Femsa 
rose 1.08 percent after its Coca-Cola bottling unit,
the world's largest coke bottler, said it will buy a 51 percent
stake in Coca-Cola Co's Philippine bottling operations
for $688.5 million in cash.
    In Chile, the blue-chip IPSA index rose 0.76 percent
on a 1.38 percent gain in retailer Falabella.

    
    Latin America's key stock indexes at 2300 GMT:    
    
 Stock indexes                      Daily  Year-to
                         Latest       pct     date
                                   change      pct
                                            change
 MSCI Latam             3,739.10     0.43      3.8
                                           
 Brazil Bovespa        59,604.92     0.49     5.02
                                           
 Mexico IPC            43,050.92      0.1    16.11
                                           
 Chile IPSA             4,263.04     0.76     2.05
                                           
 Chile IGPA            20,854.96     0.67     3.60
                                           
 Argentina MerVal       2,696.98     3.33     9.52
                                           
 Colombia IGBC         14,534.65    -0.40    14.76
                                           
 Peru IGRA             20,147.08    -0.06     3.46
                                           
 Venezuela IBC        474,229.16     0.22   305.20

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