EMERGING MARKETS-Latam stocks rise as commodities rally

* Bovespa up 1.02 pct, Mexico’s IPC rises 0.31 pct

* Commodities rise, fueled by weaker dollar

* Thin volumes seen ahead of year-end holiday

By Luciana Lopez

SAO PAULO, Dec 21 (BestGrowthStock) – Latin American equities
gained in early trading on Tuesday, following U.S. stocks (Read more about the stock market today. )
higher on a brighter economic outlook as a weaker dollar fueled
a rally in commodities, key to the region.

The MSCI Latin American stocks index (.MILA00000PUS: ) added
1.4 percent early in the session, even as the approaching
Christmas and year-end holidays were expected to keep volumes
thin this week.

“We’ve got a more benign outlook abroad,” said Silvio
Campos Neto, chief economist with Banco Schahin in Sao Paulo.
“That’s influencing us more than on Monday,” when the
expiration of stock options added to volatility in Brazil.

Recent data have boosted hopes the U.S. economy — the
world’s largest, and a major trading partner for Latin America
— is getting back on track, Campos Neto said.

The U.S. dollar also slipped 0.03 percent against a basket
of major currencies (.DXY: ), which in turn helped commodities.
The Reuters-Jefferies index (.CRB: ) added 0.4 percent, and
copper hit a record high. For details, see [ID:nLDE6BK1A5]

A number of heavyweight companies in Latin America are tied
to the trade in raw materials.

Brazil’s benchmark Bovespa stock index (.BVSP: ) rose 1.1
percent, retaking ground lost in the previous session.

Shares of mining company Vale (VALE5.SA: ), the world’s
largest producer of iron ore, moved up 0.8 percent. An increase
in global crude steel production last month is good for Vale,
analysts from Ativa brokerage said. [ID:nLDE6BJ12R]

“The data point to an important recovery in annual terms
… and this is an important signal for Chinese demand for iron
ore, which expanded in annual terms after three consecutive
months down,” they said.

Brazilian steelmakers also rose, with Gerdau (GGBR4.SA: ) up
2.11 percent, Usiminas (USIM5.SA: ) up 1.11 percent and CSN
(CSNA3.SA: ) up 2.29 percent.

State-controlled energy company Petrobras (PETR4.SA: )
advanced 1.06 percent.

Mexico’s IPC stock index (.MXX: ) added 0.31 percent,
recovering from its slight dip in the previous session.

Shares of leading retailer Walmex (WALMEXV.MX: ) rose 0.59
percent. The country’s retail sales rose in October, data
showed on Monday. [ID:nN20177458]

Telecom giant America Movil (AMXL.MX: ) climbed 0.51

Chile’s IPSA index (.IPSA: ) slipped 0.42 percent, hitting
its lowest levels in a week.

Cencosud (CEN.SN: ) lost 1.44 percent, as fellow retailer
Falabella (FAL.SN: ) lost 0.52 percent.
(Editing by Jeffrey Benkoe)

EMERGING MARKETS-Latam stocks rise as commodities rally