EMERGING MARKETS-Earnings, Fed bets lift Latam stocks

* Brazil’s Bovespa up 0.45 pct, Mexico’s IPC up 0.5 pct

* Mexico earnings season over, collective profits up 8 pct

* Petrobras flat after Libra oil find sized
(Adds commentary, updates prices)

By Caroline Stauffer and Silvio Cascione

MEXICO CITY/SAO PAULO, Oct 29 (BestGrowthStock) – Latin American
stocks rose on Friday on positive corporate earnings reports
and sustained bets the U.S. Federal Reserve will move to inject
funds into the U.S. economy next week.

Earnings season has ended in Mexico, with companies
collectively posting an 8 percent increase in third-quarter
profit from the same period a year ago.

“Today the market is primarily riding on upbeat company
earnings,” said Tulio Chavez, a trader at brokerage Actinver in
Mexico City. “But we also continue to see liquidity from the
Fed speculation.”

The MSCI Latin American stocks index (.MILA00000PUS: ) added
0.87 percent. Expectations of a cash injection from the U.S.
central bank have helped Latin American stocks pack on nearly
12 percent since Sept. 1.

Mexico’s IPC (.MXX: ) added 0.5 percent.

Retailer Elektra (ELEKTRA.MX: ), which is controlled by media
and telecom baron Ricardo Salinas, jumped 4.44 percent after
third-quarter earnings beat expectations.

“Elektra turned in the best results of the industry,”
Fernando Olvera, an analyst at BBVA Bancomer, wrote in a
research report on Friday. “Recovering consumer demand in
Mexico should favor the company in 2011.”

Elektra specializes in selling big-ticket appliances to
low-income clients and charges high interest rates.

In Brazil, the BVSP (.BVSP: ) gained 0.45 percent.

“On balance, earnings reports have been positive,” said
Alvaro Bandeira, director of Agora brokerage in Sao Paulo.

But investors could turn cautious before the market’s close
ahead of Sunday’s presidential election in Brazil, he added.

The most commonly traded shares of Petrobras (PETR4.SA: )
edged up 0.08 percent. The shares gained 8.13 percent during
a six-session rally.

Most of those gains came on trader speculation the
state-run company was preparing to unveil a large oil find.

The ANP oil regulator said on Friday that the Libra oil
prospect could hold as much as 15 billion barrels of oil
equivalent. [ID:nN29160461]

Nonvoting shares of Usiminas (USIM5.SA: ), the most commonly
traded, added 2.19 percent. The shares rose for a second
session after the company reported better-than-expected
third-quarter earnings. Voting shares (USIM5.SA: ) jumped 6.14
percent.

Chile’s blue-chip IPSA index (.IPSA: ) added 0.45 percent.

Data on Friday showed Chile’s jobless rate for the
July-September period (CLUNR=ECI: ) was 8.0 percent, slightly
below market expectations and down from the June-August
period.

“Unemployment data in Chile, which was relatively good, and
economic data from the U.S., which was as expected, have given
stocks a positive impulse,” said Gianmarco Pruzzo, a trader at
Corpbanca in Santiago.

A technical trend indicator called the MACD also crossed
above its signal line this week, suggesting an upward trend for
the IPSA after a month of horizontal movement below 4,800
points.
(Additional reporting by Alvaro Tapia in Santiago and Elzio
Barreto in Sao Paulo; Editing by Dan Grebler)

EMERGING MARKETS-Earnings, Fed bets lift Latam stocks