CORRECTED - EMERGING MARKETS-Latam stocks flat as China fears ease

(Corrects 7th paragraph to show that remarks are not a direct quote)

* Bovespa up 0.16 pct, IPC up 0.77 pct

* Chilean retailer Cencosud up on strong earnings (Adds commentary, updates prices to close)

By Luciana Lopez and Caroline Stauffer

SAO PAULO/MEXICO CITY, Nov 19 (Reuters) - Latin American stocks closed flat on Friday as investors remained uncertain about the resolution of Ireland's debt problems and measures to curb inflation in China.

The MSCI Latin American stocks index <.MILA00000PUS> edged down 0.04 percent.

China ordered lenders on Friday to lock up more of their money with the central bank for the second time in two weeks, stepping up efforts to cool inflation. [ID:nL3E6MJ0N8]

But concerns that these measures could hit the prices of the commodities many Latin American economies depend on appeared to be subsiding among investors in Latin American stocks.

Regional bourses eked out gains, with Brazil's benchmark Bovespa index <.BVSP> closing up 0.16 percent while Mexico's IPC <.MXX> rose 0.77 percent.

"Slowly and surely people are going to realize that this is a non-issue," said Alberto Bernal, head of research at Bulltick Capital Markets in Miami.

China is tightening policy because it's growing, and that growth is a good thing. It's not just going to stop growing, so managing that growth is good, Bernal said.

Providing further relief, EU sources said on Friday that a financial aid plan to help Ireland cope with its battered banks will be unveiled next week. [ID:nLDE6AI0QG]

"The relief package should take care of the Irish situation," said Jaime Aguilera, an equity strategist at HSBC in Mexico City.

RETAIL SUPPORTS

Mexico's top retailer, Wal-Mart de Mexico , led gains on Mexico's IPC, rising 2.03 percent. Mexican retailers group ANTAD reported earlier in the week that same-store sales in Mexico jumped 7.4 percent in October from a year earlier, the strongest monthly rise so far in 2010. [ID:nN16132451]

Chile's IPSA index <.IPSA> added 0.69 percent as gains in retailers offset losses in energy and commodities stocks.

Falabella gained 0.48 percent while rival Cencosud closed up 2.01 percent. Cencosud rose after analysts highlighted the 16 percent growth in the company's third-quarter profits, said Cristina Acle of CorpResearch.

Steelmakers put downward pressure on Brazil's index, however. Gerdau shed 1.14 percent and CSN fell 0.24 percent.

With steel imports in Brazil probably reaching a record 600,000 tonnes in October, the outlook for sales in the domestic market, especially for flat steel products, remains grim, Goldman Sachs noted. [ID:nN19257781]

Non-voting shares of state oil giant Petrobras led losses, falling 0.77 percent. (Additional reporting by Brad Haynes in Santiago)