December 9, 2013 / 4:55 PM / in 4 years

EMERGING MARKETS-Brazil stocks extend rally, Braskem plunges

* Brazil Bovespa gains 0.47 pct, Mexico IPC up 1.21 pct

    SAO PAULO, Dec 9 (Reuters) - Brazilian stocks rose for the
third straight session on Monday following better than expected
Chinese economic data, though shares of chemical maker Braskem
SA dropped after the company said it is renegotiating
a key contract.
    Mexico's IPC index rose its most in over a week on
optimism over an energy reform bill, while Chile's bourse
 was little-changed.
    China's exports handily beat forecasts in November, adding
to evidence of economic stabilization in Brazil's top trading
partner, while consumer inflation dropped unexpectedly, easing
concerns over monetary policy tightening. 
    China is a key purchaser of Latin American commodities
exports such as iron-ore, petroleum, soybeans and copper.
    Brazil's benchmark Bovespa stock index rose 0.47
percent to 51,181.40 as steelmakers and commodities producers
led gains.
    Steelmaker Usinas Siderurgicas de Minas Gerais SA
, known as Usiminas, rose 1.95 percent, while rival
Companhia Siderurgica Nacional SA climbed 2.25
    Preferred shares of iron-ore producer Vale SA 
advanced 0.6 percent while state-run oil company Petroleo
Brasileiro SA, known as Petrobras, added 0.75
    Shares of Braskem, Latin America's largest petrochemical
firm, fell nearly 6 percent after the company said on Monday
that it is in negotiations with Petrobras, its main naphtha
supplier. A source with knowledge of the situation told Reuters
that Petrobras is looking to pass on some of its higher costs to
Braskem when the contract, which expires early next year, is
    Mexico's IPC index rose 1.21 percent to 42,433.67.
    Investors were optimistic as key Senate committees neared a
vote on a bill to open up state-run energy industries to greater
private investment. 
    Shares of telecommunications firm America Movil,
controlled by billionaire Carlos Slim, rose 2.3 percent,
contributing most to the index's gains, while lender Grupo
Financiero Banorte advanced 2.02 percent.
    Chile's IPSA index hovered near Friday's closing
level as a 1.8 percent rise in shares of Latam Airlines Group SA
 helped offset a 1.8 percent fall in conglomerate Copec
    Latin America's key stock indexes at 1625 GMT:
 Stock indexes          Latest         daily %   YTD %
                                       change    change
 MSCI LatAm             3,234.45       1.17      -15.82
 Brazil Bovespa         51,181.40      0.47      -16.03
 Mexico IPC             42,433.67      1.21      -2.91
 Chile IPSA             3,710.42       0.09      -13.74
 Chile IGPA             18,267.08      0.17      -13.30
 Argentina MerVal       5,359.88       0.53      87.78
 Colombia IGBC          13,020.84      0.33      -11.52
 Peru IGRA              14,718.92      0.35      -28.65
 Venezuela IBC          2,603,674.91   0.23      452.28
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