EMERGING MARKETS-Latin American stocks up on US jobless claims

* Unexpected drop in U.S. jobless claims backs rebound

* Petrobras gains on official comments on share offer

* Megacable up after service deal with Telefonica

* Bovespa adds 0.45 pct, Mexico’s IPC gains 0.08 pct

MEXICO CITY/SAO PAULO, Aug 26 (BestGrowthStock) – Latin American
stocks rose on Thursday after an unexpected drop in U.S.
jobless claims eased concerns about the weak labor market in
the United States, one of the region’s top trading partners.

The MSCI Latin American stocks index (.MILA00000PUS: ) gained
1.17 percent, breaking a six-session losing streak, its longest
string of declines since May. Between Aug. 16 and Wednesday,
the index lost 5 percent on fears the U.S. economy could tip
back into recession.

But Thursday’s report of a steeper-than-expected drop in
U.S. initial weekly claims for unemployment benefits lent
support for a modest bounce in Latin American equities. For
details, see[ID:nN26186848].

“It gives the markets a bit of steam,” said Luciano
Rostagno, chief strategist of CM Capital Markets in Sao Paulo.

Brazil’s benchmark Bovespa index (.BVSP: ) added 0.45 percent
supported by gains in state-run oil giant Petrobras.

Shares in Petrobras (PETR4.SA: ) rose 1.3 percent after
Brazilian regulators told Reuters the government and the
company will likely agree on details of a plan to inject funds
into the company on or after Aug. 30. [ID:nSPG003023]

“I think the market looks favorably on the idea of getting
this resolved,” Rostagno said.

Mining giant Vale (VALE5.SA: ), the world’s largest producer
of iron ore, rose 1.8 percent.

Mexico’s IPC stock index (.MXX: ) rose 0.08 percent to

Miner Grupo Mexico (GMEXICOB.MX: ) rose 0.81 percent while a
0.3 percent loss in shares of America Movil (AMXL.MX: ) offset

Shares in cable television company Megacable (MEGACPO.MX: )
rose 1.17 percent . Megacable said late Wednesday that it
signed with Spanish telecom giant Telefonica (TEF.MC: ) to offer
cellphone service using Telefonica’s network. [ID;nN25162093]

In Chile, the blue-chip IPSA index (.IPSA: ) gained 0.71
percent bolstered by a 1.6 percent gain in industrial
conglomerate Copec (COP.SN: ).
(Reporting by Luciana Lopez in Sao Paulo and Caroline
Stauffer in Mexico City, Editing by W Simon )

EMERGING MARKETS-Latin American stocks up on US jobless claims