EMERGING MARKETS-Brazil stocks extend rally, Braskem plunges

Reuters

* Brazil Bovespa gains 0.47 pct, Mexico IPC up 1.21 pct

SAO PAULO, Dec 9 (Reuters) - Brazilian stocks rose for the

third straight session on Monday following better than expected

Chinese economic data, though shares of chemical maker Braskem

SA dropped after the company said it is renegotiating

a key contract.

Mexico's IPC index rose its most in over a week on

optimism over an energy reform bill, while Chile's bourse

was little-changed.

China's exports handily beat forecasts in November, adding

to evidence of economic stabilization in Brazil's top trading

partner, while consumer inflation dropped unexpectedly, easing

concerns over monetary policy tightening.

China is a key purchaser of Latin American commodities

exports such as iron-ore, petroleum, soybeans and copper.

Brazil's benchmark Bovespa stock index rose 0.47

percent to 51,181.40 as steelmakers and commodities producers

led gains.

Steelmaker Usinas Siderurgicas de Minas Gerais SA

, known as Usiminas, rose 1.95 percent, while rival

Companhia Siderurgica Nacional SA climbed 2.25

percent.

Preferred shares of iron-ore producer Vale SA

advanced 0.6 percent while state-run oil company Petroleo

Brasileiro SA, known as Petrobras, added 0.75

percent.

Shares of Braskem, Latin America's largest petrochemical

firm, fell nearly 6 percent after the company said on Monday

that it is in negotiations with Petrobras, its main naphtha

supplier. A source with knowledge of the situation told Reuters

that Petrobras is looking to pass on some of its higher costs to

Braskem when the contract, which expires early next year, is

renegotiated.

Mexico's IPC index rose 1.21 percent to 42,433.67.

Investors were optimistic as key Senate committees neared a

vote on a bill to open up state-run energy industries to greater

private investment.

Shares of telecommunications firm America Movil,

controlled by billionaire Carlos Slim, rose 2.3 percent,

contributing most to the index's gains, while lender Grupo

Financiero Banorte advanced 2.02 percent.

Chile's IPSA index hovered near Friday's closing

level as a 1.8 percent rise in shares of Latam Airlines Group SA

helped offset a 1.8 percent fall in conglomerate Copec

Latin America's key stock indexes at 1625 GMT:

Stock indexes Latest daily % YTD %

change change

MSCI LatAm 3,234.45 1.17 -15.82

Brazil Bovespa 51,181.40 0.47 -16.03

Mexico IPC 42,433.67 1.21 -2.91

Chile IPSA 3,710.42 0.09 -13.74

Chile IGPA 18,267.08 0.17 -13.30

Argentina MerVal 5,359.88 0.53 87.78

Colombia IGBC 13,020.84 0.33 -11.52

Peru IGRA 14,718.92 0.35 -28.65

Venezuela IBC 2,603,674.91 0.23 452.28

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