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EMERGING MARKETS-Brazil stocks hit 4-1/2 month high, Mexico up

MEXICO CITY, Oct 16 (Reuters) - Brazilian stocks rose to a

4-1/2 month high on Wednesday as oil firm OGX climbed on hopes

of a cash infusion and U.S. lawmakers appeared close to passing

a deal to avert a potentially damaging debt default.

Brazilian stocks have gained ground in recent weeks on bets

the worst of an economic slowdown has passed, helping stocks

climb back from a recent slump. Weak growth in Mexico has

dragged stocks there off record highs seen early this year.

* Brazil's Bovespa index gained 1.8 percent to close

at its highest since late May.

* Shares of Brazilian tycoon Eike Batista's OGX Petróleo e

Gás Participações SA rose 38.24 percent on hopes it

may receive a cash injection as part of a restructuring plan.


* Early in the afternoon, Republican and Democratic leaders

in the U.S. Senate announced a bipartisan deal to raise the U.S.

debt limit and end the government shutdown, but it was set to be

a temporary solution that leaves the door open to another

showdown early next year.

* Mexico's benchmark IPC index rose only a modest

0.34 percent as a jump in shares of telecom company America

Movil was offset by losses in bottler Femsa.

* America Movil's shares gained 3.16 percent after the

company announced it would not proceed with a plan to boost its

stake in Dutch telecom KPN.

* Femsa shed 1.51 percent to its lowest price

in nearly a year as Mexico's lower house finance committee

looked set to approve a new tax on soft drinks that is expected

to hit sales at the bottler of Coca-Cola Co beverages.

Latin America's key stock indexes at 2200 GMT:

Stock indexes daily % YTD %

change change


MSCI LatAm 3,463.82 0.92 -8.79

Brazil Bovespa 55,973.03 1.8 -8.17

Mexico IPC 40,355.27 0.34 -7.67

Chile IPSA 3,856.42 0.09 -10.34

Chile IGPA 18,994.36 0.1 -9.85

Argentina MerVal 5,256.79 -0.53 84.17

Colombia IGBC 14,297.90 0.29 -2.84

Peru IGRA 15,540.24 0.24 -24.67

Venezuela IBC 1,895,133 0.37 301.99