EMERGING MARKETS-Brazil stocks buoyed by strong China data


MEXICO CITY, Nov 4 (Reuters) - Strong economic data out ofChina boosted Brazilian stocks on Monday, led by gains in minerVale and oil producer Petrobras, while investors in Mexicoshowed caution ahead of key data in the United States.

Brazil's Bovespa stock index rose 0.78 percent,after data on both China's services sector and its factorysector showed signs of strength.

China is Brazil's biggest trading partner and a keypurchaser of Latin American commodities exports such asiron-ore, soy, copper and petroleum.

Activity in China's services sector expanded at the fastestpace in 13 months in October, according to data on Sunday. Thatfollowed data on Friday showing the manufacturing sectorstrengthened in October, with the country's official PurchasingManagers' Index reaching an 18-month high.

The news helped push shares of Vale up 2.3percent and state-run oil company Petroleo Brasileiro SAPetrobras up 1.81 percent.

In contrast, Mexico's IPC index fell 0.21 percent, asinvestors awaited the release of the U.S. monthly labor marketreport on Friday, a key for gauging the health of the U.S.economy and the likelihood of when the Federal Reserve willstart to taper stimulus.

The Fed has been injecting $85 billion a month into the U.S.economy, and some of that money often finds its way to emergingmarkets as investors seek higher yields.

On Monday, Fed officials underscored Fed Chairman BenBernanke's promise that the U.S. central bank will not reducestimulus according to a set timeline, but rather in response toeconomic developments.

Shares of bottler and retailer Femsa fell 2.09percent, contributing the most to the Mexican index's losses.

Chile's bourse rose 0.11 percent as shares ofretailer Cencosud rose 3.86 percent.

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