EMERGING MARKETS-Latam stocks rise to highest since Nov

* Brazilian stocks get boost from Fitch upgrade

* Regional indices near overbought RSI levels

* Brazil Bovespa up 0.63 pct, Mexico IPC up 0.34 pct

By Silvio Cascione and Luciana Lopez

SAO PAULO, April 4 (Reuters) – Latin American stocks rose
to their highest since late last year on Monday, with Brazilian
stocks lifted after ratings agency Fitch upgraded the country’s
debt, but some signs suggested stocks could pull back after a
strong rally.

The MSCI Latin American stocks index (.MILA00000PUS: Quote, Profile, Research) added
0.43 percent to close at its highest since November 2010 after
five sessions of gains.

But the index’s relative strength index hit a level that
suggested it was overbought. The RSI is used in technical
analysis to gauge an asset’s momentum.

Brazil earned its highest-ever credit rating on Monday, as
Fitch said the South American powerhouse was set for strong
economic growth and for less public spending. [ID:nN04265221]

But analysts said the impact of this upgrade – and others
that could follow from different agencies – was largely priced
in by the market. Credit rating agencies awarded investment
grades to Brazil in 2008 and 2009.

“These rating increases, hereafter, tend to have less and
less of an impact on the market,” said Roberto Padovani, chief
strategist at WestLB Brazil.

Still, analysts said Brazil’s improving credit rating will
help companies lower their borrowing costs in the coming

Brazil’s benchmark Bovespa index (.BVSP: Quote, Profile, Research) rose 0.63 percent
to its highest since Jan. 19. The index has gained nearly 4
percent since last Monday and it broke a key resistance level
around 68,000 points last Wednesday.

The lack of important local or global data due this week
could lead markets to move sideways, analysts said.

Technical analysts said the Bovespa would hit more strong
resistance around 70,500 or 71,000, or between 1 and 2 percent
higher from Monday’s close.

Shares in mining giant Vale (VALE5.SA: Quote, Profile, Research) rose 2.36 percent.
The stock has been volatile in recent sessions on speculation
about an executive shake-up. Vale, the world’s largest iron ore
miner, said its holding company would meet to select a
replacement for Acting Chief Executive Roger Agnelli on April
7. [ID:nN31285411]

Mexico’s IPC stock index (.MXX: Quote, Profile, Research) added 0.34 percent and also
closed at a more than two-month high. The IPC’s relative
strength index came its closest to generating an overbought
signal since early January.

Industrial conglomerate Alfa (ALFAA.MX: Quote, Profile, Research) rose 3.07 percent
while broadcaster Grupo Televisa (TLVACPO.MX: Quote, Profile, Research) rose 0.96

Oil prices rose to their highest since 2008 on Monday amid
unrest in oil producing nation’s. [ID:nL3E7F40I5]

Carlos Alonso, head of stock trading at brokerage
Interacciones, said oil prices could again start to weigh on
global growth.

“The longer oil prices stay up, the less growth we will see
in 2011,” he said. “We have just had a big rally for all the
negative forces that could be affecting markets, and we are
recommending taking advantage of these levels to get some

Traders pointed to weak volume as a sign that investors had
little conviction that stocks would gain much more ground in
the coming sessions.

Chile’s IPSA index (.IPSA: Quote, Profile, Research) rose 0.55 percent for a fourth
day of gains as industrial conglomerate Copec (COP.SN: Quote, Profile, Research) added
1.72 percent.

However, the advance brought the IPSA’s 14-day RSI near
overbought levels for the first time since November.
(Additional reporting by Michael O’Boyle in Mexico City;
Editing by Dan Grebler)

EMERGING MARKETS-Latam stocks rise to highest since Nov