EMERGING MARKETS-Latam stocks rise as Yellen comments spur rally

Reuters

* Brazil Bovespa rises 2.34 pct, Mexico IPC up 1.36 pct

MEXICO CITY, Nov 14 (Reuters) - Brazilian stocks led LatinAmerican bourses higher on Thursday after Janet Yellen, who islikely to become the next head of the Federal Reserve, suggestedthe U.S. central bank's monetary stimulus would not be drawndown anytime soon.

Brazil's Bovespa index gained the most in nearly twomonths, while Mexico's IPC index rose by the most in overa month as confidence grew that the Fed would maintain its $85billion monthly bond buying program.

Yellen told the U.S. Senate Banking Committee on Thursdaythat high unemployment, weak inflation and an economy runningbelow potential meant the Fed had "more work to do."

Monetary stimulus from the Fed has helped boost globalliquidity, underpinning demand for Latin American equities,especially the most widely-traded shares, which are oftenpreferred by foreign investors.

Brazil's benchmark Bovespa stock index rose 2.34percent to 53,451.60 points, its strongest close in over a week.

Shares of state-run oil company Petroleo Brasileiro SA, known as Petrobras, gained 2.56 percent,contributing most to the index's gains, while Brazilianhomebuilder Gafisa SA, advanced 8.59 percent.

Mexico's IPC index rose 1.36 percent to end at40,306.70 points as mining firm Grupo Mexico advanced 5.06 percent, contributing most to the index's gains.

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