EMERGING MARKETS-Latam stocks fall again; Brazil's Gol rises

* Brazil Bovespa down 1.02 pct, Mexico IPC down 0.61 pct

MEXICO CITY, Nov 25 (Reuters) - Brazilian stocks led Latin

American bourses down on Monday, dropping for the third session

in four as investors eyed a deteriorating fiscal outlook and

higher interest rates in Latin America's largest economy.

Mexico's IPC index and Chile's bourse also

dipped.

Brazil's benchmark Bovespa stock index fell 1.02

percent to 52,263.51, adding to a more than 14 percent drop for

the year. The Bovespa looks set to post its first monthly loss

in five in November, having dropped more than 3.6 percent since

the government announced a far worse-than-expected September

budget deficit on Oct. 31.

"We're not tracking the gains in markets abroad because

things here are looking quite complicated, with the outlook for

a worsening fiscal situation and higher interest rates," said

Alvaro Bandeira, a partner with Orama Investimentos in Rio de

Janeiro.

All but two of 62 economists polled by Reuters expect

Brazilian policymakers to raise the benchmark Selic rate

by 50 basis points to 10 percent on Wednesday, its

highest since March 2012.

Shares of miner Vale fell 2.11 percent,

contributing most to the index's losses, while Brazilian

state-run oil company Petrobras shed 1.5 percent.

Shares of airline Gol Linhas Aereas SA jumped

3.66 percent after the company said that a measure of ticket

prices known as yield rose 14 percent in October from a year

earlier, while executives forecast a stable outlook for domestic

flights next year.

Mexico's IPC index dipped 0.61 percent to 40,948.36

points, with a 1.92 percent fall in the shares of

telecommunications company America Movil and a 2.97

percent dip in conglomerate Alfa dragging down the

index.

Chile's IPSA dropped 0.48 percent to 3,717.72

points, weighed down by a 1.64 percent decline in the shares of

industrial conglomerate Empresas Copec, which reported

lower than expected third quarter profit on Friday.

Latin America's key stock indexes at 2126 GMT:

Stock indexes Latest Daily YTD pct

pct change change

MSCI Latam 3,281.09 -0.92 -12.81

Brazil Bovespa 52,263.51 -1.02 -14.25

Mexico IPC 40,948.36 -0.61 -6.31

Chile IPSA 3,717.72 -0.48 -13.57

Chile IGPA 18,336.47 -0.48 -12.97

Argentina MerVal 5,529.54 2.49 93.73

Colombia IGBC 13,226.43 -0.93 -10.12

Peru IGRA 15,032.63 -0.43 -27.13

Venezuela IBC 2,487,549.67 5.17 427.65