RPT-EMERGING MARKETS-LatAm stocks up on airline merger, profits

(Refiles to reconcile bullet points with text)

* LAN, TAM shares extend surge on merger plans

* Banco de Brasil gains after 2nd-qtr profits rise 35 pct

* Weak Japan GDP weighs on global sentiment

* Bovespa up 0.45 pct, Mexico’s IPC dips 0.14 pct

SAO PAULO/MEXICO CITY, Aug 16 (BestGrowthStock) – Latin American
stocks rose on Monday, supported by bank earnings in Brazil and
as optimism over a merger to create the region’s biggest
airline boosted shares for a second straight session.

The MSCI Latin American stocks index (.MILA00000PUS: ) rose
0.76 percent even as assets were pressured by weak growth data
out of Japan that fed concerns about a global slowdown.

The Thomson Reuters Latin America total return index
(.TRXFLDLATU: ) rose 0.79 percent.

Shares in Brazil’s TAM (TAMM4.SA: ) jumped 5.41 percent
following Friday’s news that it will merge with Chile’s LAN
(LAN.SN: ) to form LATAM Airlines Group. LAN shares rose 3.81
percent. For details, see [ID:nN13221392]

“The merger puts TAM, or LATAM as it will be (called), at a
new level as one of the biggest companies in the world,” said
Diana Litewski, stock analyst at Oren Investimentos in Rio de
Janeiro.

Litewski noted the deal will increase TAM’s access to
international airports. Shares in both airlines surged on news
of the merger on Friday, with LAN gaining around 11 percent in
the last two sessions while TAM is up around 37 percent.

The gains helped lift Brazil’s Bovespa (.BVSP: ) 0.45
percent.

Shares in Banco do Brasil (BBAS3.SA: ), Latin America’s
largest bank by assets, rose 1.18 percent after its
second-quarter profit (Read more your timing to make a profit.) surged 34.7 percent, topping analysts’
expectations. For details see [ID:nN16214143]

JAPAN WEIGHS

Chile’s IPSA (.IPSA: ) fell 0.28 percent reflecting weaker
global equities markets after data showed Japan’s economy grew
below forecasts at just 0.1 percent in the second quarter.
[ID:nTOE67901S]

A 1.17 percent loss at Chilean industrial conglomerate
Copec (COP.SN: ) offset LAN’s gains.

The data from Japan added to concerns about slowing growth
in the United States that knocked around 2.94 percent off the
MSCI Latin American index last week, its worst weekly
performance since the last week of June.

“Investors preferred less risky instruments with the signs
of weakness in the American economy,” wrote Mexico City-based
brokerage Invex in a report. “We do not see any signs of this
caution dissipating.”

Mexico’s IPC stock index (.MXX: ) edged down 0.14 percent
despite a 1.29-percent gain in shares of Inbursa (GFINBURO.MX: ),
the financial group controlled by billionaire Carlos Slim.

Broadcaster Televisa (TLVACPO.MX: ) shed 1.33 percent after
Mexico’s telecommunications regulator Cofetel delayed until
this week a controversial vote on whether to allow Televisa
entry into the mobile phone business, according to a source
close the situation. [ID:nN13224786]

Brazil’s JBS SA (JBSS3.SA: ), the world’s largest beef
producer, fell 2.38 percent after posting a 97 percent slump in
second-quarter profit (Read more your timing to make a profit.) after two mergers. [ID:nN14211190]

RPT-EMERGING MARKETS-LatAm stocks up on airline merger, profits