EMERGING MARKETS- Latam stocks down on Fed doubt, Petrobras up

* Bovespa down 0.24 pct, Mexico's IPC down 0.31 pct

* Petrobras turns positive on speculation over oil find

* Analysts divided on "buy" or "sell" Cemex (Adds Petrobras gains, updates prices to close)

By Caroline Stauffer and Guillermo Parra Bernal

MEXICO CITY/SAO PAULO, Oct 27 (Reuters) - Latin American stocks fell on Wednesday as investors pulled back bets on how much stimulus the U.S. Federal Reserve is prepared to pour into the world's largest economy.

Market expectations have centered around an initial Fed commitment to buy at least $500 billion in Treasury debt over five months. But a Wall Street Journal report on Wednesday said the amount could be less. [ID:nTOE69Q02H]

The MSCI Latin American stocks index <.MILA00000PUS> dropped 0.98 percent. The index has gained more than 11 percent since Aug. 31 as investors sought equities ahead of the expected cash injection in the United States.

Mexico's IPC index lost 0.31 percent after closing at its fourth consecutive all-time high in the previous session.

"There is some apprehension that the stimulus funds could be less than expected," said Carlos Ponce, head of analysis at brokerage IXE in Mexico City. "But after eight weeks of gains on the IPC, a correction is not surprising."

Top-weighted America Movil , Latin America's largest telecommunications company, led losses, down 1.58 percent.

Santander reduced its rating on the stock to hold from buy on Tuesday. America Movil has added 5.3 percent this month.

Cemex, the world's No. 3 cement maker, edged up 0.28 percent after surging 7 percent in the previous session.

The company posted worse-than-expected results on Tuesday but won more flexibility from its bankers to pay back debt, leaving analysts divided on whether to buy or sell.

Of the nine analysts consulted by Reuters, two have a "buy" or "outperform" recommendation on Cemex, five have a "hold" or "neutral" rating, and two have a "sell" or "underperform" rating. [ID:nN27236494]

Brazil's Bovespa index <.BVSP> lost 0.24 percent.

The country's No. 2 private-sector bank, Banco Bradesco , fell 4.47 percent after reporting third-quarter profits that beat estimates. Investors bet the bank's profits were already priced in.

From the beginning of September, Bradesco's stock rose nearly 14 percent on the Bovespa.

OIL RUMOR BOOSTS PETROBRAS

Non-voting shares of Petrobras turned positive during the session as traders speculated that the company would announce a big oil find after this month's presidential election.

Petrobras representatives denied the rumors. The company did announce on Wednesday that drilling off the coast of Sergipe state in the northeast turned up signs of a large deposit of light oil. [ID:nN27216799]

"The main news about the company (today) is the oil deposit in Sergipe," said one trader in Sao Paulo who asked not to be named. "But people are saying that the real oil discovery news will only come out after the elections," repeating comments made by other traders to Reuters.

Chile's IPSA <.IPSA> rose for the eighth straight day, adding 0.89 percent to close at a second consecutive life high, helped by expectations of strong local earnings in the retail sector, traders said.

Leading gains, retailer Cencosud jumped 4.14 percent. (Additional reporting by Felipe Iturrieta in Santiago and Silvio Cascione in Sao Paulo; Editing by Dan Grebler)