April 9, 2013 / 2:20 PM / in 5 years

EMERGING MARKETS-Latam stocks rise on China inflation data

* China inflation cools in March
    * Commodities exporters rally
    * Brazil Bovespa gains 0.57 pct, Mexico IPC flat

    By Asher Levine
    SAO PAULO, April 9 (Reuters) - Latin American stocks rose on
Tuesday after data showing a slowdown in Chinese inflation
boosted the outlook for more growth-inducing monetary stimulus
in the No. 1 market for the region's commodities.
    The MSCI Latin American stock index advanced
for the third straight session, rising 0.53 percent.
    Mining and oil firms driving gains in Brazil's Bovespa index
 while Mexico's IPC index was little-changed.
    Shares gained after data showed China's annual consumer
inflation rate eased in March, lifting concerns that
policymakers would tighten monetary policy, which could crimp
economic growth. 
    China is a key purchaser of Latin American commodities such
as iron-ore, soy, copper and petroleum.
    "The China data shows that there is still room for the
country to grow," said Andre Perfeito, chief economist with
Gradual Investimentos in Sao Paulo. "The Bovespa, as a very
commodities-heavy index, is extremely sensitive to the external
scenario. If China does well, Vale does well."
    Brazil's benchmark Bovespa stock index gained for
the third straight session as shares of heavily-weighted
iron-ore mining firm Vale, which counts China as its
biggest customer, rose 2.4 percent.
    Oil producer OGX Petroleo e Gas Participações SA 
rose over 5 percent in opening trade on media reports that
Brazil's government is considering ways to support the firm and
its sister companies, though the stock reversed those gains
later in the session, falling 0.6 percent.
    "Considering the news wasn't confirmed today, the stock
returned to falling," said Luiz Roberto Monteiro, a trader with
brokerage Renascenca in Sao Paulo. 
    OGX shares have fallen 60 percent this year alone due to
concerns over weaker-than-expected output and the potential need
for more capital.
    Mexico's IPC index was little-changed as a 0.6
percent gain in shares of lender Grupo Financiero Banorte
 offset a 0.3 percent loss in America Movil
, the telecommunications firm controlled by billionaire
Carlos Slim.
    Chile's IPSA index gained for the second straight
session, as shares of Banco de Chile rose 0.9 percent.
    A technical indicator known as the relative strength index
returned from "oversold" territory, however, indicating gains in
the index may be limited in coming sessions. 
    Latin America's key stock indexes at 1350 GMT:
 Stock indexes                            daily %     YTD %
                                Latest     change    change
 MSCI LatAm                    3,792.59      0.53     -0.66
 Brazil Bovespa               55,403.31      0.56     -9.10
 Mexico IPC                   43,401.00     -0.07     -0.70
 Chile IPSA                    4,310.71      0.29      0.22
 Chile IGPA                   21,188.32      0.22      0.56
 Argentina MerVal                  0.00         0   -100.00
 Colombia IGBC                13,543.46     -0.79     -7.97
 Peru IGRA                    19,429.07      0.25     -5.82
 Venezuela IBC               635,109.88         0     34.72
0 : 0
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