* Investors cautious over Q4 results
* Steelmaker CSN rises on possible gov't support in mill buy
* Brazil Bovespa gains 0.63 pct, Mexico IPC flat
By Danielle Assalve
SAO PAULO, Jan 29 Brazilian stocks closed higher
after a choppy day of trading on Tuesday as the Bovespa index
tracked gains in U.S. markets but failed to soar, with investors
cautious over the next crop of corporate earnings results.
In the United States, the S&P 500 hovered near 1,500 points
on Tuesday and was on track to post its best monthly performance
since October 2011 as a positive earnings season buoyed domestic
Mexico's IPC index and Chile's bourse were
Brazil's benchmark Bovespa stock index rose 0.63
percent to 60,406.33 after spending most of the session in
negative territory. Despite the gains, analysts and traders
pointed to an atmosphere of caution.
"This is a result of uncertainty about the performance of
the Brazilian economy this year, and the fiscal situation of the
United States, which is still pending," said Pedro Galdi, chief
strategist at the SLW brokerage.
Many investors have refrained from taking long or
medium-term positions in the Bovespa in recent weeks, analysts
said, due to worries that local companies are unlikely to post
encouraging fourth-quarter results, especially following weak
third-quarter growth in Brazil's economy.
Shares of steelmaker Cia Siderúrgica Nacional SA
rose 2.27 percent after a local newspaper reported that state
development bank BNDES could deploy up to 4 billion
reais ($2 billion) to help bankroll the firm's potential
purchase of ThyssenKrupp AG's Steel Americas unit.
Rival steelmakers Usinas Siderurgicas de Minas Gerais SA
and Gerdau SA rose 2.61 percent and 1.7
percent, respectively, after Goldman Sachs Group Inc analyst
Marcelo Aguiar said in a Tuesday report that recent
underperformance in Brazilian steel shares was unjustified and
Preferred shares of iron-ore mining giant Vale
gained 1.17 percent. On Monday the company said it would propose
shareholder dividends of at least $4 billion this year,
two-thirds of the minimum dividends approved in 2012, following
a global slowdown and a drop in iron ore prices.
Mexico's IPC index ended barely changed at 45,907.98,
dulling a recent rally that pushed stocks up nearly 5 percent
A technical indicator known as the relative strength index
remained in "overbought" territory, however, indicating stocks
may have room to fall further in coming sessions.
Shares of troubled telecommunications firm Axtel
rose 2.88 percent after it announced results of a
debt exchange offer that should give it room for maneuver.
Chile's IPSA index also ended flat at 4,516.85.
Latin America's key stock indexes at 2233 GMT:
Stock indexes % change
MSCI LatAm 3,958.74 0.97
Brazil Bovespa 60,406.33 0.63
Mexico IPC 45,907.98 -0.01
Chile IPSA 4,516.85 -0.04
Chile IGPA 22,015.47 -0.07
Argentina MerVal 3,470.15 3.83
Colombia IGBC 15,035.59 0.39
Peru IGRA 20,940.92 0.07
Venezuela IBC 493,594.88 0.32