EMERGING MARKETS-Latam stocks up after slump on U.S. budget fears

Reuters

MEXICO CITY, Oct 4 (Reuters) - Latin American stocks bounced

higher on Friday after slumping during the week as a U.S. budget

stalemate and government shutdown weighed down investor demand

for riskier assets.

The region's stocks could be facing more losses next week if

worries deepen that feuding U.S. lawmakers might fail to raise

the country's borrowing limit this month, which could trigger an

unprecedented U.S. debt default.

* Brazil's benchmark Bovespa stock index rose 0.68

percent as preferred shares of state oil firm Petrobras

rose 0.7 percent. The index still finished the week

down nearly 1.7 percent in the last five sessions, its worst

week since the end of August.

* Petrobras shares bounced back after a slump early in the

session following an announcement from Moody's late Thursday

that Petrobras' debt rating would be lowered because of concerns

that fuel subsidies and huge investment commitments would cause

the company's debt to grow until at least 2015.

* OGX Petroleo e Gas Participacoes SA, the

debt-laden oil company controlled by Brazilian entrepreneur Eike

Batista, rose 4.55 percent after the company said late on

Thursday that it was considering all measures to protect assets

and stay in business.

The stock hit an all-time low this week after losing about

99 percent of its value from a 2010 high. Analysts and sources

have said the company is likely to run out of cash this month

and is preparing to file for bankruptcy within the next 30 days.

* Mexico's IPC index added 0.17 percent as the shares

of bottler Femsa rose 1.87 percent. The IPC ended

the week nearly flat.

* The shares of retailer Wal-Mart de Mexico

fell 0.87 percent after the company said after market close on

Thursday that sales at its Mexican stores fell more than

expected in September, when massive flooding hit much of the

country.

* Chile's IPSA index rose for the second straight

session, adding 0.33 percent as industrial conglomerate Copec

added 2.15 percent.

Latin America's key stock indexes at 2300 GMT:

Stock indexes daily % YTD %

Latest change change

MSCI LatAm 3,362.06 0.81 -11.47

Brazil Bovespa 52,848.97 0.68 -13.29

Mexico IPC 40,909.54 0.17 -6.40

Chile IPSA 3,839.24 0.33 -10.74

Chile IGPA 18,876.06 0.26 -10.41

Argentina MerVal 4,855.47 -0.22 70.11

Colombia IGBC 14,046.16 -0.10 -4.55

Peru IGRA 15,530.89 -0.75 -24.71

Venezuela IBC 1,747,754.98 0.04 270.73

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