EMERGING MARKETS-Latam stocks rise after China data, bank rules

Published 09/13/2010, 12:14 PM
Updated 09/13/2010, 12:16 PM
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* Mexico's IPC up 0.9 pct, Brazil's Bovespa rises 1.6 pct

* Latam index jumps hits more-than-4-month high

* Brazil stocks gain on positive factory data from China

By Caroline Stauffer and Luciana Lopez

MEXICO CITY/SAO PAULO, Sept 13 (Reuters) - Latin American stocks posted gains on Monday as upbeat Chinese factory data and new global bank regulations cheered global markets.

The MSCI Latin American stocks index <.MILA00000PUS> rose 1.89 percent to 4,214, its highest in more than four months.

Mexico's IPC Index <.MXX> touched a one-month high, gaining 0.85 percent.

Global regulators agreed on Sunday to force banks to more than triple their capital reserves in hopes of preventing another credit crisis and provided more transition time than many bankers expected. See [ID:nN13186102].

"The market is very positive due in part to Chinese data, but mostly after the Basel agreement," said Gerardo Roman, head of stock trading at Actinver exchange in Mexico City. "This signifies a healthier, more trustworthy global financial system."

Shares in cell phone giant America Movil , which makes up around 26 percent of the IPC, gained 1.42 percent.

Miner Grupo Mexico added 1.23 percent, boosted in part by higher copper prices, analysts said.

Trading on Mexico's exchange took place at normal volume on Monday, but Roman anticipated transactions would start to drop on Tuesday afternoon as Mexico prepares for Thursday's independence day celebration.

Brazil's Bovespa <.BVSP> gained 1.47 percent. Unlike Mexico, which sends roughly 80 percent of its exports to the United States, China is Brazil's top trading partner.

Chinese factories increased production in August and money growth easily topped analysts' expectations, according to data released on Saturday. For more, see [ID:nSGE685069].

"China is set to provide an important positive impulse for its trading partners in the coming months," JP Morgan analysts wrote in a report. "We look to other August releases next week to reinforce this message, showing strength in private investment and retail sales alongside evidence that the industrial production slowdown is ending."

Shares of mining giant Vale , the world's largest producer of iron ore, gained 2 percent. The company counts China as a major customer.

The most commonly traded shares in state-run oil and gas company Petrobras led index gains, rising 2.7 percent.

The company's supply director said on Monday that Petrobras is expected to have record fuel sales this year, exceeding 2009 sales by 12 percent. See [ID:nSAS002134].

Chile's blue-chip IPSA index <.IPSA> posted a 0.82 percent gain, led by the nation's top banks. Latin America's third-largest index touched a life high last week.

Banco Santander Chile jumped 3.7 percent.

"World markets are all up, and even though our stock market has been on a tear this month, we're going to follow global bourses," said Felipe Cruz of CorpCapital in Santiago. (Reporting by Caroline Stauffer in Mexico City, Luciana Lopez in Sao Paulo and Brad Haynes in Santiago. Editing by Dan Grebler)

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