EMERGING MARKETS-Latam stocks rally on possible cenbank action
(Updates to close, recasts)
* Global central banks prepare action ahead of Greek vote
* Brazil's Bovespa up 1.36 pct, Mexico's IPC up 0.8 pct
By Rachel Uranga and Danielle Assalve
MEXICO CITY/ SAO PAULO, June 15 (Reuters) - Latin American stocks rose on Friday on hopes that global central banks are readying to stabilize financial markets if Greek election results cause more financial turmoil but the rally could be short-lived.
The MSCI Latin American stock index rose 1.72 percent to 3,443 points, its biggest surge in more than a week, as investors bet the Greek election would not be the immediate drag on emerging markets some feared. The index has gained about 1.3 percent on the week.
A report that the world's major central banks are prepared to provide liquidity in case of any turmoil from Sunday's election helped spur the rally late Thursday and has eased fears should an anti-bailout party wins Greek elections Sunday.
But the MSCI Latin American index has been stuck in a range between 3,320 and 3,420 points for the past three weeks as investors fear that short-term measures to calm markets would do little to fix slowing global growth and the euro zone's ongoing debt crisis.
"The market might have a momentary relief with this action from central banks, but the scenario remains grim," said Flavio Barros, a fund manager at Grau Gestao de Ativos in Sao Paulo.
Some investors are also speculating a bout of weak economic data in the United States could push the Federal Reserve to seek another round of monetary stimulus, or so-called quantitative easing, but analysts call the measures a Band-Aid solution.
"Markets may really rally on this (stimulus), it may rally again on speculation of quantitative easing and then policy response but (the gains are) getting less every time," said Frederick Searby, a strategist with Deutsche Bank Securities in New York. "Everyone knows that it's going to be a really volatile time (ahead) until something structural happens to resolve it, because it has all been stop-gap."
Brazil's benchmark Bovespa stock index, jumped 1.36 percent to end at 56,104 points, adding about 3 percent on the week.
OGX, the oil company controlled by Brazilian billionaire Eike Batista, gained 5.72 percent.
Shares in shipbuilder OSX, also controlled by Batista, rose 5.39 percent after the company secured 2.7 billion reais ($1.3 billion) in financing for the construction of its Acu shipyard, about 250 miles north of Rio de Janeiro, according to a securities filing on Friday.
Mexico's benchmark IPC index climbed for a second straight session, rising 0.80 percent to 37,738 points. The index added 1.1 percent for the week.
Retail giant Wal-Mart de Mexico rose 2.81 percent and mining company Grupo Mexico advanced 3.09 percent.
In Chile, the IPSA index added 1.02 percent to 4,317 points.
Banco Santander Chile increased 2.91 percent, driving gains in the index, while retailer Cencosud climbed 1.11 percent.
Chile's central bank held its key interest rate steady at 5 percent, as expected, for a fifth straight month on Thursday, saying domestic markets were largely stable. (Additional reporting by Asher Levine, Editing by Gary Crosse)
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