EMERGING MARKETS-Latin American stocks up on US retail data

* Mexico's IPC up 0.3 pct, Brazil's Bovespa down 0.3 pct

* Chile's .IPSA gains in afternoon trading

* Petrobras weighs on Brazil's index (Adds commentary, updates prices to afternoon)

By Caroline Stauffer and Luciana Lopez

MEXICO CITY/SAO PAULO, Sept 14 (Reuters) - Mexican stocks rose on Tuesday after a U.S. government report showed sturdy consumer spending in August, while Brazil's Bovespa pared gains.

The MSCI Latin American stocks index <.MILA00000PUS> gained 0.28 percent.

Mexico's IPC index <.MXX> rose 0.29 percent, up 4 percent from the beginning of September.

"Today is part of an ongoing rally related to economic indicators in the United States," said Jaime Aguilera, an equity strategist at HSBC in Mexico City. "U.S. retail sales were better than expected."

Mexico sends roughly 80 percent of its exports to the United States, which makes its markets particularly sensitive to the U.S. economy.

Wal-Mart de Mexico , Mexico's top retailer, led index gains, rising 0.53 percent. Conglomerate Grupo Carso, which includes Mexico's top department store, gained 1 percent.

"September should be a good month for Walmex," Aguilera said. "There is an extra weekend and independence day festivities give people a reason to shop."

Brazil's Bovespa fell 0.27 percent as both preferred and ordinary shares of state-oil company Petrobras fell 2.58 and 2.94 percent, respectively.

Shares of LLX Logistica , the parent company of logistics company LLX Sudeste, plunged 7.33 percent.

Brazilian mining company MMX plans to issue up to $2.2 billion in shares to finance the buyout of LLX Sudeste and the purchase of new mines. [ID:nN13119474] Shares in MMX rose 1.52 percent.

Chile's blue-chip IPSA index <.IPSA> rose 0.29 percent. Banco de Chile added 2.37 percent while shares in Retailer Falabella traded 1 percent higher.

Chile's Lan Airlines shed 0.24 percent.

LAN and Brazil's TAM Airlines announced merger plans in August to create Latin America's largest airline and compete for the region's booming passenger and cargo demand.

Deutsche Bank awarded TAM with buy ratings on Tuesday and TAM rose 0.25 percent on the Bovespa.

"We believe that name represents the most attractive way to participate in airline consolidation," Deutsche Bank said in a report.

Mexico's exchange will be closed Thursday and Friday and Chile's bourse shuts down Friday and Monday as both countries celebrate their independence days. (Reporting by Caroline Stauffer in Mexico City and Luciana Lopez in Sao Paulo; Editing by Dan Grebler)