EMERGING MARKETS-Latam stocks mixed as China, Brazil eyed

* China trade data strong but inflation eyed

* Bovespa up 0.35 pct, Mexico’s IPC down 0.07 pct

* Brazil’s economic outlook for 2011 still uncertain
(Updates to afternoon)

By Luciana Lopez and Michael O’Boyle

SAO PAULO/MEXICO CITY, Dec 10 (BestGrowthStock) – Latin American
stocks fell on Friday as fears loomed over the impact of higher
borrowing costs in China, a key trading partner for the region,
as well as uncertainty about Brazil’s economic outlook.

The MSCI Latin American stocks index (.MILA00000PUS: ) dipped
0.3 percent after having lost 2.4 percent over the past two
sessions. Markets were mixed across the region, with stocks
edging up in Brazil, seesawing in Chile and falling in Mexico.

Strong import and export data from China initially cheered
investors looking for strong consumption from the world’s
second biggest economy next year. For details, see
[ID:nTOE6B901S]

But the focus soon turned to the possibility of price
pressures in China, a major consumer of commodities and a
driver of global growth.

If Chinese authorities raise interest rates to cool that
economy, consumption could slow, affecting a range of companies
around the world.

“We’re in a battle for perceptions,” said Andre Perfeito,
an economist with Gradual Investimentos in Sao Paulo.

In addition, he added, investors are still unsure about
Brazil’s economy next year, Latin America’s largest, when a new
president takes office.

“The opinion with Brazil is that there’s still no clear
macroeconomic direction” for the incoming Dilma Rousseff
administration, he said.

“There have been presentations, and she’s announcing her
team for everyone to check them out,” Perfeito said. “But there
are still certain doubts.”

Brazilian investors also pulled out of some stocks ahead of
year-end, said Otavio Vieira, director of investments at Safdie
in Sao Paulo.

“It looks like local investors are being more conservative
and have a less bright outlook than foreign investors, so
they’re pocketing some gains,” he said.

Brazil’s benchmark Bovespa stock index (.BVSP: ) gained 0.35
percent, outperforming regional peers.

Shares of mining giant Vale (VALE5.SA: ), the world’s largest
producer of iron ore, rose 0.75 percent. China is the company’s
major customer.

But real estate developer PDG Realty (PDGR3.SA: ) shed 2.16
percent. That stock has slumped 4.5 percent over the past two
sessions.

Banks also suffered as investors geared up for higher
interest rates in the new year. Itau Unibanco (ITUB4.SA: ), the
country’s biggest private lender, dropped 0.68 percent, Banco
do Brasil (BBAS3.SA: ) 1.87 percent and Bradesco (BBDC4.SA: ) 0.34
percent.

On Wednesday, Brazil’s central bank held benchmark interest
rates at 10.75 percent, but left the door open for a rate hike
in early 2011 to fend off rising price pressures.

In Mexico, the IPC index (.MXX: ) edged 0.07 percent lower,
tracking what could be a third straight session of losses.

Higher consumer sentiment in the United States, which
consumes the lion’s share of Mexican exports, was not enough to
support that bourse. [ID:nN10198692]

“Markets were expecting a good number, and once it came out
in line, they sold off,” said Miguel Angel Bacquerie, an
analyst at Monex brokerage in Mexico City.

“It was a good number, but it does not change the negative
expectations about jobs, consumption and the real estate
sector.

Shares of leading retailer Walmex (WALMEXV.MX: ) gave up 1
percent, as broadcaster Grupo Televisa (TLVACPO.MX: ) moved down
1.68 percent.

Chile’s IPSA index (.IPSA: ) gave up early gains to fall 0.4
percent.

Top-weighted industrial conglomerate Copec (COP.SN: ) fell
0.98 percent, and paper producer CMPC (CAR.SN: ) retreated 1.47
percent.

EMERGING MARKETS-Latam stocks mixed as China, Brazil eyed