Latam stocks up on US data, cap week of gains

SAO PAULO: Latin American stocks rose early on Friday as gains in US manufacturing outweighed worries from a slowdown in Chinese factories, with equities tracking their best week in months.

The MSCI Latin American index rose 0.96 percent early in the session, reversing morning losses and touching a near two-month high.

The index was up 5.3 percent this week -- its best such performance since late July last year -- helped by an easing in fears Greece could become the first euro zone member to default on its debt.

US data helped in the day, with faster growth in manufacturing ameliorating early concerns about slower factory sector growth in China.

"The battery of data from the United States perked up international markets," said Adriano Moreno, a strategist with Futura Investimentos.

But he cautioned the day's gains could be short-lived.

"Things are still too cloudy abroad for us to buy into the idea that this is a real trend," he said. In July, investors will look to corporate earnings. "If we have a series of good numbers, then we could see a reversal" of recent drops.

Brazil's benchmark Bovespa stock index added 0.95 percent, for what looked to be its strongest week in a month.

Mining giant Vale rose after the company said it plans to repurchase up to $3 billion of its shares. The company's preferred shares jumped 2.17 percent and the common stock added 2.36 percent.

Shares of retailer Grupo Pao de Acucar gained 1.18 percent, capping a roller coaster week for the stock on a contentious investor buyout plan that could see it merge with French rival Carrefour.

Shares of Brazilian watchmaker Technos jumped 3.03 percent in their debut in Sao Paulo trading. The Rio de Janeiro-based company and shareholders raised a total 460 million reais ($291 million) in an initial public offering. In addition to an advance of 0.33 percent in the morning, Mexico's IPC index was up 3.75 percent for the week, its strongest gains since late March.

Shares of Monterrey-based drinks maker FEMSA climbed 1.83 percent.

Chile's IPSA index slipped 0.19 percent but was still posting its strongest week since March.

Retailers dropped, with Falabella down 0.96 percent and Cencosud losing 1.20 percent.

Copyright Reuters, 2011