EMERGING MARKETS-Latam stocks up, regional technicals mixed

* Brazil pulls back from psychologically key level

* Mexico technicals point to upward momentum

* Brazil Bovespa off 0.64 pct, Mexico IPC up 0.55 pct

By Luciana Lopez

SAO PAULO, April 6 (Reuters) – Latin American stocks edged
higher early on Wednesday, buoyed by hopes for strong corporate
earnings abroad, but divergent technical signs pointed to mixed
gains across the region for the day.

The MSCI Latin American stocks index (.MILA00000PUS: Quote, Profile, Research) edged
up 0.09 percent after closing at its highest since June 2008 in
the previous session.

Mexico’s IPC index (.MXX: Quote, Profile, Research) outpaced regional peers, adding
0.55 percent and hitting its highest intraday level since Jan.
19. A drop in the previous session helped the index pull back
from near-overbought levels, as suggested by the IPC’s relative
strength index, a technical indicator used to gauge momentum.

The IPC’s 14-day simple moving average also looked set to
cross above both its 50-day and 100-day simple moving averages,
which could mean more upward momentum ahead.

Key indexes in the United States — the world’s largest
economy and a major Latin American trading partner — gained in
early trading on earnings optimism, as well. [ID:nN06202258]

Shares of the country’s leading retailer, Walmex
(WALMEXV.MX: Quote, Profile, Research), rose 0.59 percent. The store releases same-store
sales data for March later in the day.

Mining company Grupo Mexico (GMEXICOB.MX: Quote, Profile, Research) rose 0.52
percent, as copper prices rose to a one-week peak.

Brazil’s benchmark Bovespa stock index (.BVSP: Quote, Profile, Research) slipped 0.64
percent to 69,391.82 after a 6-day rally added 3.9 percent.

The index is now retreating from the the psychologically
key 70,000 level, traders said.

“Above 70,000 points we haven’t had a lot of buyers,” said
Otavio Vieira, director of investments at Safdie in Sao Paulo.

But short-term investors could give the index support
around 69,000 points, limiting losses, he said.

The index has struggled to advance this year, with foreign
investors pulling away from emerging market equities.

“What we’ve been seeing is markets in developed countries
performing well compared to emerging economies,” said Guilherme
Sand, a fund manager with Solidus Corretora in Brazil who helps
oversee about 900 million reais in assets.

Shares of mining giant Vale continued to see high-volume
trade after the company this week named a successor to outgoing
chief executive Roger Agnelli. [ID:nN04294281]

The company’s preferred stock (VALE5.SA: Quote, Profile, Research) saw the highest
volume in the index in choppy trading. The shares slipped 0.56
percent near mid-day.

Chile’s IPSA index (.IPSA: Quote, Profile, Research) rose 0.42 percent, extending a
rally into its sixth day as strong local growth data boosts
investor confidence, traders said. [ID:nN05100042]

But the index’s RSI suggested the index could be
overbought, leaving the rally with little steam.

Industrial conglomerate Copec (COP.SN: Quote, Profile, Research) moved up 0.55
percent, although a drop of 0.93 percent in retailer Falabella
(FAL.SN: Quote, Profile, Research) helped limit gains.

(Additional reporting by Brad Haynes in Santiago and Michael
O’Boyle in Mexico City; Editing by Andrew Hay)

EMERGING MARKETS-Latam stocks up, regional technicals mixed