* U.S. new unemployment claims drop to four-year low
* Brazil inflation falls below expectations in March
* Brazil Bovespa gains 0.66 pct, Chile IPSA up 0.18 pct
By Asher Levine
SAO PAULO, April 5 Latin American stocks gained
on Thursday as encouraging unemployment data in the United
States and lower-than-expected inflation figures in Brazil
boosted demand for shares of commodities producers and
The MSCI Latin American stock index gained
0.32 percent to 4058.19. The index is on track to end the week
with a 1.1 percent weekly decline.
A religious holiday kept Mexico's bourse closed. Markets in
Brazil, Mexico, Chile, Argentina, Peru, Colombia and Venezuela
will not operate on Friday due to the Good Friday holiday.
Brazil's benchmark Bovespa stock index rose for the
first session in three, climbing 0.66 percent to 63,945.03. The
index is on track for a weekly loss of 0.6 percent, its third in
Oil producer OGX, controlled by Brazil's richest
man Eike Batista, gained 3.39 percent, leading the index higher,
while state-controlled rival Petrobras added 1.65
Shares rose after data showed new claims for unemployment
benefits in the United States fell to a new four-year low,
suggesting the labor market in the world's largest economy was
continuing to heal.
"The external scenario is still nebulous but the U.S. is
providing us with some better expectations," said Silvio Campos
Neto, an economist with Tendencias Consultoria in Sao Paulo.
"Employment data from the U.S. can sustain a slightly better
outlook for the rest of the day and perhaps for next week as
Construction firms and retailers received an additional
boost after data showed inflation in Brazil slowed more sharply
than expected in March.
"With inflation falling unexpectedly to this low level, it
helps create expectations for more interest rate cuts, which
helps the Bovespa," Campos Neto said.
Stocks linked to domestic consumption rose, with homebuilder
MRV Engenharia gaining 3.57 percent. Rivals PDG
Realty and Gafisa rose 2.42 percent and
0.47 percent, respectively.
Bank shares offset gains in the index after state-controlled
Banco do Brasil said on Wednesday it would lower
lending rates and expand its loan book. The move came on the
heels of a call by President Dilma Rousseff for banks to reduce
spreads in order to boost the impact of a string of central bank
interest rate cuts.
Shares of Banco do Brasil gained 0.50 percent after posting
their biggest intraday loss in nearly two and a half years on
Wednesday. Shares of rivals Itau Unibanco and Banco
Santander Brasil fell 1.1 percent and 1.6 percent,
Chile's IPSA index rose for the first session in
three, gaining 0.18 percent to 4,643.06. The index is on track
for a 0.7 percent weekly fall, its first losing week in four.
Retailer Falabella rose 0.76 percent, driving gains
in the index, while Banco Santander Chile rose 1.4