Latam stocks record best week in two years

Latin American stocks rose on Friday to notch their biggest one-week percentage increase in more than two years on growing investor confidence that European leaders will tackle the region's debt crisis. Investors were also buoyed by expectations that solid earnings reports could fuel further gains.
The MSCI Latin America index added 1.68 percent on Friday, bringing its gains for the week to 7.1 percent, according to Reuters calculations. "There's growing optimism in relation to the eurozone. That's not to say that the problem is resolved, but the tension has eased," said Juan Jose Resendiz head of analysis at Mexico City brokerage Arka.
Finance chiefs and central bank heads from the Group of 20 powers began two days' of meetings in Paris on Friday, with a focus on how to stem the eurozone crisis and prevent a global recession. French and German officials want to flesh out a plan in time for a European Union summit on October 23. The sovereign debt crisis has battered emerging markets, as market players sold off riskier assets on waning confidence that policy makers could prevent a Greek debt default and hold back any contagion from spreading to banks.
Fuelling optimism on Friday was data showing US retail sales grew at their fastest pace in seven months in September. The better-than-expected figures bolstered hope the United States could avert a recession. Global markets shrugged off Standard and Poor's downgrade of Spain's credit rating on Friday.
Next week earning reports are expected in another key test of the economic health of the United States. "It is very probable that the reports will support the market," Resendiz said. Brazil's benchmark Bovespa stock index added 0.77 percent on Friday, closing with its largest single weekly percentage increase in more than two years.
Brazilian steelmakers climbed, with Usiminas up 2.96 percent and CSN adding 1.4 percent. Mexico's IPC index gained 0.76 percent, contributing to the index's largest weekly improvement since July 2009. Shares of telecoms firm America Movil added 0.57 percent, and financial group Banorte rose 4.05 percent. Chile's IPSA index fell 0.32 percent as investors cashed in after a 3.6 percent rise in the last session.