EMERGING MARKETS-Latam stocks up on China factories, banks deal

* Mexico's IPC up 0.87 pct, Brazil's Bovespa up 1.82 pct

* Latam index hits highest since April

* Factory data from China, global banks deal buoy stocks (Updates to afternoon)

By Caroline Stauffer and Luciana Lopez

MEXICO CITY/SAO PAULO, Sept 13 (Reuters) - Latin American stocks gained in afternoon trading on Monday as investors saw robust Chinese factory data buoying emerging market exports, even as global bank regulations eased capital worries.

The MSCI Latin American stocks index <.MILA00000PUS> rose 1.81 percent and hit its highest intraday levels since late April.

Data on Saturday showed factories in China, the world's second-largest economy and a major driver of global growth, increased production in August and money growth easily topped analysts' expectations. For more, see [ID:nSGE685069].

"It's better perspective out of China," Kathryn Rooney Vera of Bulltick Capital Markets said of the day's trading.

The stronger-than-expected data are especially good for Brazil, she added. China last year surpassed the United States to become Brazil's biggest trading partner.

"Part of the reason why Brazil saw deceleration in industrial production (earlier this year) is because of strong correlation" with China, she said.

Brazil's Bovespa index <.BVSP> climbed 1.82 percent, headed for a third straight session of gains and touching its highest levels in about a month.

Among gainers in Latin America's largest economy were shares of mining giant Vale , the world's largest producer of iron ore, which counts China as a major customer. Its shares rose 2.61 percent.

Banks also advanced. Itau Unibanco gained 3.25 percent, Bradesco rose 3.92 percent and Banco do Brasil , Latin America's largest bank by assets, moved up 3.07 percent.

Those shares were buoyed by an agreement among global regulators to force banks to more than triple their capital reserves in hopes of preventing another credit crisis. The pact provides more transition time than many bankers expected. [ID:nLDE68B0BP].

Shares of Brazilian mining company MMX , owned by billionaire Eike Batista, rose 1.24 percent. The company plans to issue up to $2.2 billion in shares to finance the purchase of new mines and the buyout of logistics company LLX Sudeste. [ID:nN13119474]

Shares of LLX Logistica , the parent company of LLX Sudeste, plunged 6.02 percent.

Mexico's IPC index <.MXX> gained 0.87 percent, trading near its levels of early August.

Those stocks were helped by a strong performance in U.S. stocks. The United States consumes about 80 percent of Mexico's exports.

The S&P 500, which is typically a strong influence on the IPC, broke through its 200-day moving average for the first time since early August on Monday. [ID:nN13194169]

Shares in cell phone giant America Movil , which makes up around 26 percent of the IPC, gained 1.48 percent.

Miner Grupo Mexico added 1.12 percent, boosted in part by higher copper prices, analysts said.

Trading on Mexico's exchange took place at normal volume on Monday but could drop later in the week as Mexico prepares for Thursday's independence day celebration.

Chile's blue-chip IPSA index <.IPSA> rose 0.8 percent, boosted by banks.

Banco Santander Chile jumped 3.17 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)