EMERGING MARKETS-Brazil, Mexico stocks rebound from lows

November 14, 2013


SAO PAULO, Nov 13 (Reuters) - Stocks in Brazil rose on Wednesday, bouncing back from their lowest in more than two-months, while stocks in Mexico climbed back from an 11-week low.

The region's equities could post additions gains in coming sessions as analysts pointed to favorable chart formations as well bets that the U.S. Federal Reserve may not move swiftly to curb its stimulus program

That view on the Fed was backed by the release of the text of a speech from Janet Yellen, who is set to take over as chief of the U.S. Federal Reserve, after the markets closed.

In the prepared remarks for her Senate confirmation hearing on Thursday, Yellen said the U.S. central bank has "more work to do" to help an economy, suggesting that the Fed may not move quickly to scale back its bond purchases that have supported demand for riskier assets around the globe.

* Brazil's benchmark Bovespa stock index added 0.82 percent to 52,230.29 points. Before Wednesday's gains, the index had slumped back nearly 5 percent from a high in October.

* Francisco Caudillo, a chart analyst at brokerage Monex in Mexico City, said the Bovespa had bounced back from an important support and was set to rally into year-end, returning to an uptrend seen since July.

* Investors in Brazil were encouraged by a pledge for economic reform by policymakers in China, the country's top trade partner. China is a key purchaser of Latin American commodities exports such as iron ore, soy, copper and petroleum.

* Shares in state-run oil firm Petrobras rose 1.99 percent.

* Shares of airline Gol plunged 4.71 percent after it posted a seventh straight quarterly loss and forecast no rebound in the domestic market next year.

* Shares of telecommunications firm Grupo Oi rose 2.45 percent after the company beat profit forecasts on Wednesday and pledged lower capital spending next year in an effort to cut debt.

* Mexico's IPC index rose 0.43 percent after falling in the previous seven sessions.

* The index bounced back after losing nearly two-thirds of a rally seen from June to August. The same level, around 38,200, held up in late August and Monex's Caudillo said the IPC could gain back 10 percent by year end.

* Shares of industrial conglomerate Alfa rose 4.24 percent and bank Banorte added 2.74 percent.