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EMERGING MARKETS-Latam stocks rise on U.S. debt deal hopes

SAO PAULO, Oct 10 (Reuters) - Latin America's main stock

indexes rose on Thursday on hopes politicians in the United

States would finally resolve the budget and debt impasse that

has roiled global markets for weeks.

The benchmark MSCI stock index for Latin America

rose 1.9 percent ahead of a planned meeting

between U.S. government officials and Republican Party leaders.

The region's largest index, Brazil's Bovespa rose

0.79 percent, led by heavily weighted state-run oil firm

Petroleo Brasileiro SA.

"We are living on expectations, and the expectation is an

approved increase in the debt ceiling," said Leandro

Silvestrini, an analyst at Intrader in Sao Paulo.

The U.S. Treasury is expected to exhaust its borrowing

capacity by Oct. 17, when it will have only about $30 billion

left in cash to honor its obligations if the limit is not


Shares of Brazil's TIM Participações fell 0.69

percent after rising the previous day on a report that Telecom

Italia was seeking to sell its controlling stake in

the Brazilian company. Telecom Italia denied the planned sale.

Mexico's IPC index rose 1.54 percent, on track for

its first daily rise this week. Chile's IPSA rose 1.18


Latin America's key stock indexes at 14 48 GMT:

Stock indexes daily YTD % change


Latest change

MSCI LatAm 3,385.46 1.92 -12.53

Brazil Bovespa 52,962.1 0.79 -13.11


Mexico IPC 40,481.2 1.54 -7.38


Chile IPSA 3,820.95 1.18 -11.17

Chile IGPA 18,804.5 0.94 -10.75


Argentina 5,098.71 3.07 78.63


Colombia IGBC 14,149.0 0.36 11.71


Peru IGRA 15,522.3 0.07 -24.76


Venezuela IBC 1,769,69 0.08 275.38