EMERGING MARKETS-Latam stocks up after positive US data

* MSCI Latin American stocks index hits 1-week high

* Petrobras gains on growing confidence in share offer

* Bovespa up 1.18 pct, Mexico’s IPC adds 0.85 pct

SAO PAULO/MEXICO CITY, Aug 17 (BestGrowthStock) – Latin American
stocks rose on Tuesday after data suggested the U.S. economy
will keep growing and solid Irish and Spanish debt auctions
eased worries about Europe’s debt crisis.

Shares in Brazil’s Petrobras were up after the state-run
oil firm said Monday it would not delay again a share offering
that could help the company tap offshore oil reserves.

The MSCI Latin American stocks index (.MILA00000PUS: ) rose
1.7 percent for a fourth straight day of gains and hit a
one-week high.

U.S. industrial production data grew at a surprisingly
strong rate of 1 percent in July, while producer prices rose
for the first time in four months last month. For details, see
[ID:nN17175177] and [ID:nN17122732]

“The producer price increase diminishes the phantom of
deflation. It is a good sign, and industrial production was
better than expected,” said Jaime Ascencio, an analyst at
brokerage Actinver in Queretaro, Mexico. “This is improving
market spirits.”

The United States is Mexico’s top trading partner and a
major influence on the region. A downgrade of U.S. growth
prospects by the U.S. Federal Reserve spurred a nearly 3
percent slump in Latin American shares last week.

Brazil’s Bovespa index (.BVSP: ) rose 1.3 percent as shares
in Petrobras (PETR4.SA: ) advanced 2.5 percent.

The company’s chief executive said Monday he does not
foresee another delay to a September stock offering and the
government said it will soon release a gauge for crude reserves
to be used in the capitalization plan. [ID:nN16137957] and
[ID:nN16276050]

Petrobras said Tuesday its current leverage ratio will not
affect its credit ratings despite market concerns about the
company’s heavy borrowing. [ID:nN17127864]

EUROPEAN DEBT AUCTIONS

Also supporting demand for riskier assets across Latin
America, Irish and Spanish debt auctions attracted strong
demand on Tuesday and allayed concerns about the pressure on
funding costs for euro zone countries saddled with high debt
and poor growth. [ID:nLDE67G0M1]

“Liquidity is improving in Europe, and this is positive,”
Ascencio said.

Brazilian real estate developer PDG Realty (PDGR3.SA: ) rose
3.5 percent after reporting that quarterly profits beat
expectations.

Miner Vale (VALE5.SA: ), the world’s biggest iron ore
producer, added 1.1 percent as metals prices rose, lifting the
Reuters/Jefferies CRB commodity index (.CRB: ) by 0.7 percent.

Copper miner Grupo Mexico (GMEXICOB.MX: ) added 2.1 percent,
supporting an 0.85 percent gain in Mexico’s IPC index (.MXX: ).

Shares in broadcaster Televisa (TLVACPO.MX: ) added 1.5
percent after Mexican regulators approved the broadcaster’s
plan to enter the mobile phone market, promising more
competition with market leader America Movil. [ID:nN16272353]

Chile’s IPSA index (.IPSA: ) added 0.8 percent led by a 6.8
percent jump in fertilizer maker SQM.

SQM (SQM_pb.SN: ) rose after Potash Corp (POT.TO: )(POT.N: ), a
key shareholder, said its board rejected an unsolicited $39
billion offer from miner BHP Billiton (BHP.AX: )(BLT.L: ).[ID:nN17133127]
(Reporting by Michael O’Boyle in Mexico City and Luciana
Lopez in Sao Paulo; editing by Jeffrey Benkoe)

EMERGING MARKETS-Latam stocks up after positive US data