* Brazil's Bovespa falls 0.34 percent, Mexico's IPC up 0.47
MEXICO CITY, Dec 10 (Reuters) - Brazilian stocks edged lower on Tuesday, with investors cautious over a potential tapering of U.S. monetary stimulus as well as slightly weaker-than-expected economic data in China.
The U.S. Federal Reserve is expected to begin trimming its monthly asset purchases in March, a Reuters poll showed on Monday, but some economists believe it could come as early as this month or at the January policy meeting.
The Fed's stimulus program has helped support demand for riskier assets such as Latin American equities and increased speculation over Fed action has tended to drag on local shares.
Data on Tuesday showed industrial output in China grew 10 percent in November, a four-month low and slightly below market expectations.
China is Brazil's biggest trading partner and a key purchaser of Latin American commodities exports such as iron ore, soy, copper and petroleum.
Brazil's benchmark Bovespa stock index was down 0.34 percent to 50,993.02 after a three-day rally.
Iron ore miner Vale and state-controlled lender Banco do Brasil SA contributed most to the index's losses, falling 0.85 percent and 1.44 percent, respectively.
Itaú Unibanco Holding SA, Brazil's largest non-government bank, dipped 0.54 percent. The bank's return on equity is likely to surpass 20 percent next year as it benefits from lower delinquencies and bad loan provisions and climbing interest income, a source told Reuters.
Homebuilder Gafisa SA helped support the index, rising 3.82 percent after the company said it had concluded the sale of 70 percent of its Alphaville unit and announced a stock buyback.
Mexico's IPC index added 0.47 percent to end at 42,490.10 points, lifted by a 1.81 percent rise in shares of media giant Televisa.
Banking group Grupo Banorte gained 1.02 percent.
Chile's IPSA index added 0.11 percent, thanks to a 1.79 percent rise in shares of blue-chip electricity producer Endesa Chile. A local newspaper reported on Tuesday that the company was weighing whether to build a new natural gas installation, citing an Endesa executive.