EMERGING MARKETS-Latam stocks up ahead of Mexico, Chile holiday

* MSCI Latam stocks index rises 0.16 pct

* Mexico's IPC dips 0.03 pct, Bovespa up 0.61 pct

* Investors cover positions ahead of Mexico, Chile holidays (Updates to afternoon)

By Caroline Stauffer and Luciana Lopez

MEXICO CITY/SAO PAULO, Sept 15 (Reuters) - Latin American stocks reversed losses to edge up at the close on Wednesday after a day largely spent in the red ahead of long weekends in Mexico and Chile.

The MSCI Latin American stocks index <.MILA00000PUS> advanced 0.16 percent, extending a streak of gains to a fifth straight session.

With upcoming holiday closures in Mexico on Thursday and Friday and Chile on Friday and Monday, investors proved cautious during much of the session.

"Given the current situation, investors aren't disposed to stay in the market," said Marco Reyes, an analyst with Interacciones in Mexico City.

While disappointing manufacturing data in the United States pressured markets early in the day, key U.S. indexes turned positive during the session and closed higher, although they remained rangebound.

In emerging markets, "core equities lacked direction," analysts from RBC Capital Markets wrote in a note to clients.

Mexico's IPC index <.MXX> ended down 0.03 percent, reversing almost all of the day's losses.

Among stocks giving ground, the country's leading retailer, Walmex , lost 0.37 percent, and top U.S. cement supplier Cemex shed 1.25 percent.

But shares of telecom giant America Movil closed 0.06 percent higher despite trading in the red much for most of the session.

Brazil's Bovespa index <.BVSP> gained 0.61 percent after a drop on Tuesday.

Shares of OGX , the oil and gas company owned by Brazil's richest man, Eike Batista, gained 2.29 percent. Batista said on Wednesday that he is not interested in purchasing assets put up for sale by Royal Dutch Shell Plc in the country. [ID:nN15190271]

Mining company Vale , the world's largest producer of iron ore, rose 0.57 percent.

LLX Logistica rose 3.23 percent, the biggest jump among Brazilian equities. The stock plunged 14 percent over the past two sessions on news that mining company MMX will issue up to $2.2 billion in shares in part to buy out LLX Sudeste, controlled by LLX Logistica. [ID:nN13119474]

Shares of MMX edged up 0.38 percent.

Limiting gains, shares of state-controlled energy company Petrobras fell. The preferred shares lost 1.49 percent and the common stock 0.53 percent.

Petrobras shares have taken a beating this year as investors have dumped the stock amid growing uncertainty about the future after a planned share offering worth up to $65 billion and an oil-for-shares swap with the government. [ID:nN03214360]

Chile's IPSA index <.IPSA> rose 0.44 percent and notched yet another record high close, with its 30-day relative strength index above the pivotal 70 level. An RSI above that level indicates an asset could be overvalued.

Shares of retailer Falabella added 2.66 percent, leading gains. (Additional reporting by Lorena Segura in Mexico City and Brad Haynes in Santiago; Editing by Dan Grebler)