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EMERGING MARKETS-Fiscal proposal lifts Mexican stocks, Brazil falls
September 10, 2013 / 9:22 PM / 4 years ago

EMERGING MARKETS-Fiscal proposal lifts Mexican stocks, Brazil falls

* Investors extend gains from Mexico's fiscal proposal
    * MMX shares sink on news of Rio port talks
    * Brazil's Bovespa falls 0.5 pct, Mexico's IPC up 1.90 pct

    SAO PAULO, Sept 10 (Reuters) - Mexican stocks surged for the
third straight session on Tuesday as the government's
weaker-than-expected fiscal reform proposal continued to please
    Brazilian stocks rose early after data showed Chinese
factory output grew at the fastest pace in 17 months in August,
suggesting the world's second-largest economy is stabilizing
after slowing for more than two years. 
    China is a key purchaser of Latin American raw materials
exports, such as iron ore, soy, copper and petroleum.
    But Brazilian stocks soon fell, with the Bovespa index
 closing down 0.5 percent, pulled lower by losses in
billionaire Eike Batista's troubled mining and oil interests,
OGX and MMX, which both fell more than 10
    Batista is in talks to cede control of MMX's iron ore port
near Rio de Janeiro in exchange for $400 million of new
investment and debt relief, according to a securities filing.
    Electricity generator MPX Energia SA, formerly
controlled by Batista, rose nearly 1 percent after the company
said on Tuesday that he could sell his remaining stake in the
    Mexico's IPC index added 1.9 percent, its second
successive day of strong gains after President Enrique Pena
Nieto proposed a fiscal overhaul to boost Mexico's paltry tax
take but shied away from a divisive tax on food and medicine. 
    Conglomerate Alfa added 5.71 percent, while
retailer Walmex gained 2.49 percent.
    Restaurant operator Alsea announced after the
market closed that it was buying Walmex's Vips restaurant chain
for 8.2 billion pesos ($626.96 million). 
    Chile's IPSA index was unchanged. 
    Latin America's key stock indexes at 2039 GMT:
 Stock indexes                            daily %  year-to-da
                       Latest              change        te %
 MSCI LatAm                  3,332.06        1.57      -12.26
 Brazil Bovespa             53,979.03        -0.5      -11.44
 Mexico IPC                 41,732.98         1.9       -4.51
 Chile IPSA                  3,893.42          -0       -9.48
 Chile IGPA                 19,096.22        0.01       -9.37
 Argentina MerVal            4,502.04        3.06       57.73
 Colombia IGBC              14,030.83        1.00       10.78
 Peru IGRA                  17,130.34         0.9      -16.96
 Venezuela IBC           1,447,872.22        0.27      207.12

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