EMERGING MARKETS-Latam stocks gain on commodities, euro relief

* Latin stocks rise on commodities, growing risk appetite

* Japan bid to buy euro zone debt eases funding concerns

* Brazil’s Bovespa up 0.5 pct, Chile’s IPSA gains 0.2 pct

SAO PAULO, Jan 11 (BestGrowthStock) – Latin American stocks gained
on Tuesday after a pledge by Japan to buy euro zone bonds
bolstered Europe’s outlook and supported gains for Latin
America’s commodity-fueled companies.

The MSCI Latin American stocks index (.MILA00000PUS: )
climbed 0.7 percent, heading for its first gain after dropping
2.7 percent over the previous three straight sessions.

Japan’s euro zone support dampened fears of a debt crisis
in the region that could hold back economic recovery and sap
demand for emerging market commodities. [nL3E7CB076]

“The aid from Japan to European bonds helped the euro, and
that supported commodities, which favored Brazil and Mexico,”
said Juan Jose Resendiz, head of analysis at brokerage Arka in
Mexico City.

Escalating debt troubles in Europe have been an overhang on
stocks in Latin America and other emerging markets that
fluctuate based on investors’ perception of default risk in the
euro zone.

Japan’s vow to buy bonds should ease the financing
situation for Portugal, Spain and Italy that have large volumes
of debt maturities this week, said Julio Hegedus, chief
economist for brokerage InterBolsa in Sao Paulo, in a note.

Brazil’s benchmark Bovespa stock index (.BVSP: ) rose 0.5
percent to 70,507.73, led by gains in iron ore producer Vale
and state-run oil giant Petrobras that benefited from an
increase in copper and crude oil prices.

Gains in the Bovespa “should remain along the day with
positive signs coming from the euro zone,” Hegedus said.

Vale (VALE5.SA: ) rose 1.3 percent to 51.71 reais. Petrobras
(PETR4.SA: ) was up 0.9 percent to 27.22 reais.

Shares of Cesp (CESP6.SA: ) jumped 3 percent to 29.98 reais
after newspaper Folha de S. Paulo reported the state of Sao
Paulo is considering selling a stake in the energy generator to
federally owned Furnas. [ID:nN11103952]

Going against the trend in the broader market, oil start-up
OGX (OGXP3.SA: ) slumped 1.7 percent to 20.39 reais after the
company said that reserves found in a well in the Santos Basin
were not commercially viable. [ID:nN11108065]

In Mexico, the IPC index (.MXX: ) traded sideways as gains in
mining companies were offset by a slump in mobile operator
America Movil and broadcaster Televisa. Top gainers included
miners Penoles (PENOLES.MX: ) up 1 percent and Grupo Mexico
(GMEXICOB.MX: ) rising 1.3 percent, while top U.S. cement
provider Cemex (CMXCPO.MX: ) was up 1.3 percent.

America Movil (AMXL.MX: ) dropped 0.3 percent, while Televisa
(TLVACPO.MX: ) lost 0.8 percent.

Chile’s IPSA index (.IPSA: ) firmed 0.3 percent, led by a 0.8
percent gain in industrial conglomerate Copec (COP.SN: ) and a
1.3 percent rise in bank BCI (BCI.SN: ).

(Reporting by Elzio Barreto and Michael O’Boyle in Mexico
City; Editing by Andrew Hay)