EMERGING MARKETS-LatAm stocks rise with commodities, FX mixed

* Brazil industry output up less than forecast; rates fall

* Rise in oil prices boost LatAm stocks, offsets Wall St

* Brazil's miner Vale issues $1 bln in 30-year bonds

By Walter Brandimarte

NEW YORK, Nov 3 (Reuters) - Latin American stocks firmed on
Tuesday as rising commodity prices boosted shares of mining and
energy companies, but currencies ended mixed amid concerns
about further government actions to curb their appreciation.

Brazilian interest rates fell after lower-than-forecast
industrial output data was seen as a sign the central bank may
not need to tighten monetary policy as much as previously
expected.

Despite a negative Wall Street performance, appetite for
emerging market assets remained in place, allowing Brazilian
miner Vale (VALE5.SA) to sell $1 billion in 30-year bonds, in a
deal more than two times oversubscribed. [ID:nN03494715]

The MSCI stock index for Latin America .MILA00000PUS
ended 2.12 percent higher, with the Brazilian Bovespa .BVSP
index up 1.78 percent and Mexico's IPC .MXX gaining 0.84
percent.

A trader in Mexico City said stocks were also supported by
Wall Street gains on Monday, when key Latin American markets
did not operate.

"And we should not forget we're coming from a week of
significant losses, which left markets ready for a technical
rebound," the trader added.

Also supporting stock gains in Brazil was news the
country's industrial production rose 0.8 percent in September
from August, although that was less than the 1.1 percent
expected by economists. [ID:nN03482224]

"The economic recovery remains in effect" in Brazil,
Bulltick Capital Markets strategist Kathryn Rooney said in a
report, noting industrial production numbers have been positive
month-on-month since the beginning of the year.

"At the same time, it is not as aggressive a positive
number as the market expected -- evidence in favor of our
monetary expectations, which is against market consensus, that
the central bank will not tighten aggressively in 2010," she
added.

STRONG REAL

Also supported by the positive market sentiment, the
Brazilian real (BRBY) gained 0.57 percent to 1.746 per U.S.
dollar.

Investors remained cautious about possible new measures to
curb appreciation of the real after a 2 percent financial tax
on dollar inflows into stocks and fixed-income imposed by the
government last month.

"While there is still speculation the government may ba
cktrack on the unprecedented decision to tax equity
investments, it is becoming clearer any changes to be made on
that certain aspect of the measure will be accompanied by
another that will assure greater success on dampening currency
appreciation," RBS Securities analyst Boris Segura said in a
note.

In Oxford, England, Brazil's central bank president
Henrique Meirelles said the Group of 20 developed and emerging
economies should discuss ways of combating asset bubbles at its
meeting in Scotland this weekend. [ID:nL3382131]

The Mexican peso MXN=, on the other hand, lost 0.36
percent to 13.26 per U.S. dollar on worries of a possible
downgrade of the country's sovereign ratings after Congress
passed a watered-down fiscal reform aimed at reducing the
country's dependence on waning oil revenues.

(Additional reporting by Lizbeth Salazar in Mexico City;
Editing by Andrew Hay)