* Brazil stocks climb back over key support level
* Mexico index rises by most in over 14 months
* Brazil Bovespa rises pct 1.45, Mexico IPC up 1.78 pct
By Michael O'Boyle
MEXICO CITY, March 26 Brazilian stocks bounced
back from an eight-month low on Tuesday, but slack volume
pointed to an anemic rebound, while Mexican stocks rose by the
most in more than 14 months.
Brazil's Bovespa index climbed 1.45 percent to
55,671.39 points, back up above a key support level around
55,000 points after five-straight sessions of losses.
Still, trading volume failed to surpass a bigger bulk of
operations seen in recent days of heavy selling, suggesting that
bargain hunters were still not willing to enter in droves.
Brazilian stocks have been hit by investor concerns over
government measures to revive growth in the country, Latin
America's top economy, even as inflation is creeping higher.
"(Today's gains are) just a correction after recent falls.
This is further evidenced by the low volume of trading. I cannot
believe this is a trend reversal," said Ariovaldo Santos,
manager of equities at brokerage H.Commcor in Sao Paulo.
Brazilian stocks are down about 5 percent from a high on
March 8 and around 10 percent from a high in early January.
Chart watchers said a break back below 55,000 in the coming
sessions on strong volume could point toward a further drop to
the next major support level, around 52,200 points, or about 6
percent down from Tuesday's close.
Shares of the most widely-traded commodities firms gained in
Brazil. Iron-ore mining giant Vale SA rose 1.07
percent. Steelmaker Usinas Siderurgicas de Minas Gerais SA
, known as Usiminas, added 4.49 percent.
Latin American stocks got support from encouraging U.S.
economic data and waning concerns surrounding Cyprus' banking
system bailout that had weighed on demand for riskier assets
around the globe in recent sessions.
Data showed demand for durable U.S. manufactured goods
surged in February while U.S. single-family home prices jumped
in January, suggesting a recovery in the world's largest economy
is gaining steam.
Mexico's IPC index climbed 1.78 percent to 43,664.73
points in its biggest one-day percentage jump since January
2012, according to Reuters data. Volume rose to its highest
since March 15.
Shares of America Movil, billionaire Carlos Slim's
flagship telecommunications firm, rose nearly 2 percent as
investors bet concerns the company could face tougher regulation
were overblown. The stock has rallied back more than 13 percent
from around a 4-year low hit on March 15.
Shares in Mexican bottler and convenience chain operator
Femsa rose 4.44 percent.
Chile's IPSA index rose the most in more than two
weeks, up 0.7 percent, with shares of retailer Falabella
up 1.92 percent and those of Banco de Chile
gaining 1.54 percent.
Latin America's key stock indexes at 2130 GMT:
Stock indexes daily YTD %
Latest % change
MSCI LatAm 3,782.02 1.54 -0.42
Brazil Bovespa 55,671.39 1.45 -8.66
Mexico IPC 43,664.73 1.78 -0.09
Chile IPSA 4,440.50 0.7 3.23
Chile IGPA 21,718.00 0.47 3.07
Argentina MerVal 3,417.32 0.36 19.73
Colombia IGBC 14,093.46 0.78 -4.23
Peru IGRA 19,762.85 0.09 -4.20
Venezuela IBC 619,867.81 -0.68 31.48