* Commodities prices help lift Latin American stocks
* China growth outlook, U.S. trade data help gains
By Jeb Blount
RIO DE JANEIRO/MEXICO CITY, April 12 (Reuters) – Latin
American stocks rose on Thursday as rising commodities prices
boosted the outlook for corporate profits and a narrowing trade
deficit in the United States raised expectations for world
growth.
The MSCI Latin American stock index rose 1.4
percent, its second day of gains after hitting a 12-week low on
Tuesday.
“There’s been a lot of volatility lately but commodities
prices have gained and that’s good for many of the region’s
largest companies,” said Andre Caminada, a partner at Victoir
Capital, which manages about $900 million of equities in Sao
Paulo.
“Basically the news from China and the United States
suggests that things aren’t as bad as some had thought, that the
economy may have a cold but the fever has passed.”
Among the companies that contributed most to gains on their
local stock markets Thursday, were Mexican copper miner Grupo
Mexico and Brazilian mining company Vale
.
The Thomson Reuters/Jefferies CRB index of the 19
most-traded metals, agricultural and energy commodities
rose 1.2 percent, on track for its biggest one-day advance this
month.
Rising materials prices could be bets that Chinese growth
may be higher than expected when reported tonight, said Jim
Paulsen, Chief Investment Officer of Wells Capital Management in
Minneapolis.
China is Latin America’s largest trading partner.
The U.S. trade deficit also narrowed 12.6
percent to a lower-than-expected $46 billion in February,
according to data released Thursday, the biggest month-on-month
decline since may 2009.
Brazil’s benchmark Bovespa index of the most-traded stocks on
Sao Paulo’s BM&FBovespa; exchange rose for a second time
in eight sessions, adding 2.16 percent to 62,617.93, rebounding
from a 12-week low yesterday.
Vale preferred shares, the mining company’s most-traded
class of stock, rose 4.7 percent, providing the Bovespa index
with nearly a fifth of its gains.
OGX Petroleo e Gas, Brazil’s second-largest oil company by
market value, gained 3.9 percent. Earlier on Thursday the
company said it discovered a light-grade of crude oil in one of
its exploration areas off Brazil’s coast.
Brazil’s state-led oil company Petrobras gained
2.3 percent.
In Mexico, the IPC stock index advanced for a second
day, rising 0.3 percent to 39,287. Last week it reached an all
time high of 39,964.
The index was led higher by America Movel which rose 1.36
percent. Grupo Mexico gained 2.56 percent.
Chile’s IPSA index was little changed, falling 0.04
percent to 4,545.
Retailer Falabella fell 0.8 percent. Bank of Chile
preferred shares, class B, fell 2.78 percent while
the company’s common shares fell 0.25 percent.
