* Banco do Brasil, Itau lead gains in Bovespa
* Mexico's IPC and Chile's IPSA snap slumps
* Brazil Bovespa up 0.65 pct, Mexico IPC up 0.53 pct
By Lucas Iberico-Lozada
SAO PAULO, Aug 29 Brazilian stocks reversed a
three-session slump as foreign investors returned to emerging
market equities amid an apparent delay in a U.S.-led military
strike against Syria.
Mexico's IPC index rose by more than half a percent,
while Chile's bourse hovered around 3,550 points.
Brazil's benchmark Bovespa stock index rose 0.65
percent to 50,191.27 points, trimming the sharpest weekly
decline since the first week of July.
"We're seeing a recovery in the Bovespa from losses earlier
this week, though the tendency isn't a very strong one," said
Luis Gustavo Pereira, a strategist at Futura Corretora in Sao
Lenders led the index's gains, as a strong dollar and
expectations of continued tightening of monetary policy,
following an interest rate hike in Brazil on Wednesday, pushed
up interest rate futures.
Shares of state-owned Banco do Brasil SA were up
2.4 percent, while Itaú Unibanco Holding SA, Brazil's
largest non-state bank, were up 1.4 percent.
Weighing on the index's gains were shares of OGX Petroleo e
Gas Participacoes, the oil company controlled by
embattled Brazilian tycoon Eike Batista, which fell as much as
Heavily-weighted mining giant Vale SA saw losses
of 1.3 percent.
Mexico's IPC index snapped a six-session slump as
shares of telecommunications firm America Movil,
controlled by billionaire Carlos Slim, rose as much as 0.6
Cement producer Cemex saw gains of 1.8 percent.
Cemex shares are on track to post their first weekly decline in
Chile's IPSA index rose for the second session in
twelve as the index was led higher by a gain of nearly 1 percent
for retailer Falabella.
Latin America's key stock indexes at 1447 GMT:
Stock indexes daily % YTD %
Latest change change
MSCI LatAm 3,050.04 0.58 -20.15
Brazil Bovespa 50,191.27 0.65 -17.65
Mexico IPC 39,456.21 0.53 -9.72
Chile IPSA 3,553.76 0.45 -17.38
Chile IGPA 17,705.59 0.3 -15.97
Argentina MerVal 3,932.29 0.17 37.77
Colombia IGBC 13,790.81 0.34 -6.29
Peru IGRA 16,451.55 -0.42 -20.25
Venezuela IBC 1,346,257.72 0 185.56