EMERGING MARKETS-Latam stocks rebound on bargains, U.S. data

* Friday gains help reduce losses for the week

* Commodities advance helps stocks in Brazil

* Mexico’s IPC up 1.72 pct, Brazil’s Bovespa 2.69 pct
(Updates to close)

MEXICO CITY/SAO PAULO, Aug 27 (BestGrowthStock) – Latin American
stocks snapped their longest losing streak in 13 months on
Friday as better-than-expected U.S. growth data heartened
investors to scoop up bargains.

The MSCI Latin American stocks index (.MILA00000PUS: ) jumped
2.5 percent after dropping more than 5 percent over the past
seven losing sessions.

Despite notching its best single-day performance since June
10, the index this week shed about 1 percent overall.

A revision to U.S. second-quarter gross domestic product
data came in better than analysts polled by Reuters had
expected, encouraging investors who had seen a spate of
disappointing economic numbers from the world’s biggest
economy. For details, see [ID:nN26193565]

Investors took profits on bonds and then moved on to search
for cheap equities, said Pedro Tuesta, senior Latin America
economist at 4Cast.

“I’m not sure the momentum will last because at the end of
the day, nothing really has changed,” he added.

The gains came even as U.S. Federal Reserve Chairman Ben
Bernanke said on Friday the economic recovery has weakened more
than expected. He added, however, that the Fed stands ready to
act if needed to spur slowing growth. [ID:nN27258237]

The United States is a major influence on Latin America and
consumes the lion’s share of Mexican exports.

Latin American currencies also firmed on Friday.

Brazil’s benchmark Bovespa index (.BVSP: ) gained 2.69
percent — its biggest one-day rise since late May. Those gains
helped slash the week’s losses to around 1.6 percent from over
4 percent in the week through Thursday.

Brazilian equities were also helped by an advance in
commodities, as the Reuters-Jefferies index (.CRB: ) rose 1.22
percent. The Bovespa index includes a number of stocks tied to
the trade in raw materials.

Shares of mining giant Vale (VALE5.SA: ), the world’s largest
producer of iron ore, led gains with a rise of 3.07 percent.

State-controlled oil company Petrobras (PETR4.SA: ) moved up
3.35 percent. The stock has taken a beating this year as
investors have seen a capitalization plan generating more
questions than answers.

But investors expect a decision soon on the price the
government will charge Petrobras for oil in an oil-for-stocks
swap, answering at least one key issue in the capitalization,
which is intended to speed the tapping of offshore oil

The plan has dragged, with investors questioning whether
October presidential election will interfere with an ambitious
timeline that includes a September share offering worth up to
$25 billion.

Mexico’s IPC index (.MXX: ) gained 1.72 percent, though still
losing 1.7 percent for the week.

Grupo Carso (GCARSOA1.MX: ), the conglomerate controlled by
billionaire Carlos Slim, climbed 4.2 percent. The company
announced a plan on Wednesday to spin off real estate and
mining units, which helped the stock shoot to a record high.

Shares of telecom company America Movil (AMXL.MX: ) gained
1.88 percent, and the country’s leading retailer, Walmex
(WALMEXV.MX: ) moved up 1.58 percent.

In Chile, the blue-chip IPSA index (.IPSA: ) edged up 0.57
percent. The index had retreated in recent sessions from a new
life high set earlier in the month.

Retailer Falabella (FAL.SN: ) rose 0.72 percent.

EMERGING MARKETS-Latam stocks rebound on bargains, U.S. data