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EMERGING MARKETS-Latin American stocks boosted by Alcoa results
January 9, 2013 / 9:52 PM / 5 years ago

EMERGING MARKETS-Latin American stocks boosted by Alcoa results

* Electric utilities rebound as policymakers meet
    * Brazil Bovespa gains 0.74 pct, Mexico IPC up 0.65 pct

    By Danielle Assalve and Gabriel Stargardter
    SAO PAULO/MEXICO CITY, Jan 9 (Reuters) - Latin American
stocks rose on Wednesday, tracking global markets after early
earnings reports in the United States pointed to improving
global demand for commodities.
    Alcoa, the largest aluminum producer in the United
States, opened earnings season with pleasing results, and
although investors remain wary before policy meetings of the
European and British central banks on Thursday, Alcoa's results
boosted global equities. 
    Brazil's Bovespa index ended the day up 0.74 percent
at 61,578.58 points, tracking leading U.S. indices. The Dow
Jones industrial average was up 0.46 percent, the
Standard & Poor's 500 Index gained 0.29 percent and the
Nasdaq Composite Index, was up 0.50 percent.
    Retailers led Mexico's IPC index to a record high,
while Chile's bourse rose 0.49 percent.
    Brazil's Bovespa is recovering from a recent tumble after a
hot, dry summer reduced water levels at hydroelectric dams,
sparking fears of an energy crisis that would dent the country's
fragile economic recovery. 
    The index has lost 3.5 percent since concerns first surfaced
last week, and although Wednesday's Bovespa rise eased fears
somewhat, investors still sounded a note of caution with
domestic results and continued doubts about U.S. debt
negotiations still outstanding.
    "Investors are going to show a little caution when they
start to learn how Brazilian companies fared in the fourth
quarter and the question of the U.S. debt ceiling returns with
force," said Joao Luiz Piccioni, an analyst at Petra Asset in
Sao Paulo. 
    An index of Brazilian electric utility shares 
rebounded on Wednesday, rising 2.44 percent, after notching its
worst daily loss in nearly four months in the previous session
on concerns that low water levels in reservoirs could lead to
energy rationing.
    State-owned oil producer Petrobras rose 0.92
percent. The company is profiting from high demand for power
from its thermoelectric plants as water has disappeared from its
hydroelectric reservoirs, Chief Executive Maria das Graças
Foster said on Wednesday. 
    Preferred shares of iron-ore producer Vale rose
0.5 percent. China, Vale's best customer, reports trade data on
    Mexico's IPC index rose for the fourth session in
five, gaining 0.65 percent to 44,862.54 and reaching a record
high. The index has now risen 2.6 percent in January. 
    Retailers led gains in the IPC, with Wal-Mart de Mexico
 up 1.03 percent and bottler Femsa 
advancing 1.25 percent. 
    Chile's IPSA index was up 0.49 percent at 4,427.39

    Latin America's key stock indexes at 2103 GMT:
 Stock indexes                                    Pct change
 MSCI LatAm                          3,909.15           0.95
 Brazil Bovespa                     61,578.58           0.74
 Mexico IPC                         44,862.54           0.65
 Chile IPSA                          4,427.39           0.49
 Chile IGPA                         21,620.07           0.47
 Argentina MerVal                    3,071.83           1.78
 Colombia IGBC                      14,817.55           1.28
 Peru IGRA                          21,588.08            0.2
 Venezuela IBC                     474,003.41           0.15

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