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EMERGING MARKETS-Brazilian stocks rise on U.S. debt talks optimism

* Brazil Bovespa up 1.92 pct, Mexico IPC falls 0.23 pct

SAO PAULO, Oct 14 (Reuters) - Brazilian stocks rose to a

nearly 1-month high on Monday as U.S. policymakers appeared to

inch closer to a deal to avert a potential default, buoying

investor demand for riskier assets.

Brazil's benchmark Bovespa index rose for a fourth

session after U.S. senators said they were closing in on a deal

that would reopen the government and push back a possible

default for several months, as a Thursday deadline neared.

U.S. policymakers must raise the government's borrowing

authority in order to avoid a default. Hurdles to a deal still


Brazil's benchmark Bovespa stock index rose 1.92

percent to 54,170.60 points, its biggest one-session gain since

September 18, reversing earlier losses.

Shares of miner Vale rose 4.03 percent, adding

most to the index's gains, while OGX Petroleo e Gas SA

, the cash-strapped oil company controlled by

Brazilian tycoon Eike Batista, rose 9.52 percent.

Shares of telecommunications firm TIM Participaçoes SA

rose 0.59 percent. TIM's chief executive told a local

newspaper on Monday that the company is not for sale, denying

reports that Telecom Italia SpA wants to sell its 67

percent stake.

Mexico's IPC index fell 0.23 percent to 40,882.09


Shares of bottler FEMSA dropped 1.2 percent,

contributing most to the index's fall, while miner Grupo Mexico

shed 1.26 percent.

Chile's IPSA index rose for a third session as

shares of conglomerate Antar Chile gained 2.01 percent.

Latin America's key stock indexes at 2047 GMT:

Stock indexes daily % YTD %

Latest change change

MSCI LatAm 3,434.83 0.61 -9.56

Brazil Bovespa 54,170.60 1.92 -11.13

Mexico IPC 40,882.09 -0.23 -6.46

Chile IPSA 3,844.80 0.2 -10.61

Chile IGPA 18,939.92 0.34 -10.11

Argentina MerVal 5,241.88 1.47 83.65

Colombia IGBC 14,240.31 0.59 -3.23

Peru IGRA 15,467.03 0.04 -25.02

Venezuela IBC 1,839,710.15 0.54 290.23