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EMERGING MARKETS-Latam stocks cautiously higher on U.S. debt hopes

MEXICO CITY, Oct 11 (Reuters) - Latin American stocks rose

on Friday as investors bet that the U.S. Congress will reach an

agreement to avert a debt default.

President Barack Obama and congressional Republican leaders

inched toward resolving their fiscal impasse on Friday, but

struggled to agree on the length and terms of a short-term deal

to increase the U.S. debt limit and reopen the government.

* Mexico's benchmark IPC index gained 1.2 percent,

boosted by a 2.62 percent rise in shares of telecom company

America Movil. The index is still down more than 6

percent this year.

* Brazil's benchmark Bovespa index gained 0.29

percent, supported on Friday by gains in miner Vale

which saw shares rise 1.51 percent.

* Reuters reported on Friday that Vale has revived talks

with Glencore Xstrata over a potential combination of

the mining groups' nickel operations in Canada's Sudbury basin,

to cut costs as prices for the metal languish.

* Chile's main index rose 0.46 percent on gains in

retailer Cencosud.

Latin America's key stock indexes at 2317 GMT:

Stock indexes daily % YTD %

Latest change change

MSCI LatAm 3,414.02 0.81 -10.11

Brazil Bovespa 53,149.62 0.29 -12.80

Mexico IPC 40,975.37 1.2 -6.25

Chile IPSA 3,837.16 0.46 -10.79

Chile IGPA 18,876.65 0.39 -10.41

Argentina MerVal 5,241.88 1.47 83.65

Colombia IGBC 14,240.31 0.59 -3.23

Peru IGRA 15,460.93 -0.18 -25.05

Venezuela IBC 1,829,905.3 2.58 288.15