EMERGING MARKETS-Latam stocks gain 12 pct since Sept on Fed bets

* Brazil’s Bovespa and Mexico’s IPC both up around 0.5 pct

* Mexico earnings season over, collective profits up 8 pct

* BVSP marks highest avg daily trading volume ever in Oct
(Updates prices to close)

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
1.37 percent. Expectations of a cash injection from the U.S.
central bank have helped Latin American stocks packed on 12
percent since Aug. 31.

Mexico’s IPC (.MXX: ) added 0.54 percent, ending the month of
October up 6 percent.

Retailer Elektra (ELEKTRA.MX: ), which is controlled by media
and telecom baron Ricardo Salinas, jumped 4.92 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 0.5 percent. The Bovespa
added 1.7 percent in October and saw the highest average daily
trading volume in its history this month, according to
consultancy Economcatica.

“Anticipation of an injection from the U.S. Fed has driven
markets this month, if this doesn’t come through it could have
a very negative impact,” said Newton Rosa, head economist at
SulAmerica Investimentos.

Nonvoting shares of Usiminas (USIM5.SA: ), the most commonly
traded, added 1.29 percent. The shares rose for a second
session after the company reported better-than-expected
third-quarter earnings. Voting shares (USIM3.SA: ) jumped 5.76
percent.

Chile’s blue-chip IPSA index (.IPSA: ) added 0.54 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 Diane Craft)

EMERGING MARKETS-Latam stocks gain 12 pct since Sept on Fed bets