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EMERGING MARKETS-Brazil stocks rise on outlook for China reform, Fed

* Brazil Bovespa rises 1.44 pct, Mexico bourse closed

SAO PAULO, Nov 18 (Reuters) - Brazilian stocks reopened

higher on Monday after a market holiday Friday, boosted by the

announcement of economic reforms in top trade partner China and

the outlook for continued monetary stimulus from the U.S.

Federal Reserve.

Chile's IPSA index rose for the third straight

session while Mexico's bourse was closed for a local


China's leadership unveiled a series of economic reform

measures on Friday, pledging to let the market play a "decisive"

role in the economy and outlining changes designed to unleash

new sources of growth.

China is Brazil's biggest trading partner and a key

purchaser of Latin American raw materials such as iron-ore, soy,

copper and petroleum. Changes in the outlook for China's economy

tend to swing prices of Brazil's most widely-traded shares, most

of which are commodities producers.

Brazil's benchmark Bovespa stock index rose 1.44

percent to 54,223.57, its highest level in nearly two weeks, as

shares of iron-ore miner Vale SA and state-run oil

company Petroleo Brasileiro SA both gained nearly 2


"Part of this is China, though we also have the lag due to

our market being closed on Friday, when worse-than-expected

(U.S.) industrial production numbers lowered the chances that

the Fed would taper stimulus this year," said Joao Brugger, an

analyst with Leme Investimentos in Florianopolis, Brazil.

Investors have been watching U.S. economic data closely for

signs of strength, which could lead the Fed to reduce the size

of the massive bond-buying program that has helped underpin

demand for riskier assets such as Latin American equities.

Shares of state-run electric firm Centrais Eletricas

Brasileiras SA, known as Eletrobras, dropped 2.6

percent after it posted a 915 million reais ($400.4 million)

quarterly loss late Thursday.

Shares of steelmaker Cia Siderúrgica Nacional SA

rose 1.6 percent, adding to a 3.6 percent gain on Thursday, when

it reported a better-than-expected quarterly profit.

Grupo BTG Pactual analysts recommended investors take

profits on the shares as risks persist from logistics and mining

projects at the company.

Chile's IPSA index edged 0.09 percent higher, led by

a 1.1 percent gain in shares of conglomerate Copec and

a 0.6 percent rise in lender Banco Santander Chile.

Latin America's key stock indexes at 1330 GMT:

Stock indexes Latest daily % YTD %

change change

MSCI LatAm 3,380.18 1.61 -12.41

Brazil Bovespa 54,223.57 1.44 -11.04

Mexico IPC 41,034.11 ---- -6.11

Chile IPSA 3,802.91 0.09 -11.59

Chile IGPA 18,718.91 0.08 -11.16

Argentina MerVal 0.00 0 -100.00

Colombia IGBC 13,443.53 0.00 -8.65

Peru IGRA 0.00 0 -100.00

Venezuela IBC 2,237,304.21 0 374.57