October 18, 2013 / 2:48 PM / 4 years ago

EMERGING MARKETS-Brazil stocks gain on encouraging China growth

By Priscila Jordão and Silvio Cascione
    SAO PAULO, Oct 18 (Reuters) - Brazil's benchmark stock index
rose almost 1 percent on Friday after data showed economic
growth in key trade partner China quickened to its fastest pace
of the year.
    Brazil's Bovespa index rose 0.82 percent to 55,811,
adding to gains of more than 20 percent since early July.
Chilean and Mexican stocks were also higher, pushing up the
broader MSCI Latin American stock index by 0.42
    China's economy, the world's second-largest, grew 7.8
percent in the third quarter from a year earlier, its quickest
pace this year. The nation is the main buyer of many of Latin
America's natural resources, such as Brazilian iron ore.
    Preferred shares of Brazilian blue-chip mining company Vale
SA rose 0.91 percent to 32.13 reais, while common
shares of steelmaker Companhia Siderurgica Nacional 
gained 1.04 percent to 11.69 reais.
    Brazilian stocks also tracked optimism in the U.S. market
after strong third-quarter results from Google Inc and
Morgan Stanley, said Gustavo Mendonca, an economist with
Saga Capital in Rio de Janeiro. 
    Shares of homebuilder MRV Engenharia e Participacoes SA
 also led the Bovespa index higher with an increase of
1.60 percent to 10.14 reais. 
    The company, one of Brazil's biggest homebuilders, reported
a 35 percent increase in contracted sales in the third quarter
from a year earlier.
    Shares of OGX Petróleo e Gás Participações SA 
continued to seesaw. The stock had risen sharply earlier in the
week days on hopes of an imminent cash injection as part of a
restructuring plan. 
    Mexico's benchmark IPC index rose 0.84 percent.
Shares of restaurant operator Alsea SAB de CV, which
runs Domino's Pizza and Burger King in Mexico, jumped 4.04
percent after saying its profit more than doubled in the third
quarter from a year earlier. 
    Chile's IPSA gained 0.62 percent after a surprise
rate cut by the central bank on Thursday. 
    Key Latin American stock indexes at 1401 GMT:
 Stock indexes                              daily %       YTD %
                              Latest         change      change
 MSCI LatAm                      3,490.14      0.42       -8.49
 Brazil Bovespa                 55,811.33      0.82       -8.43
 Mexico IPC                     40,536.77      0.84       -7.25
 Chile IPSA                      3,846.91      0.62      -10.57
 Chile IGPA                     18,947.75      0.53      -10.07
 Argentina MerVal                    0.00         0     -100.00
 Colombia IGBC                  14,368.29      0.29       -2.36
 Peru IGRA                      15,763.62      0.19      -23.59
 Venezuela IBC               1,909,140.44      1.36      304.96

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