MEXICO CITY: Latin American stocks rose on Monday following the delay in possible US military action in Syria and encouraging manufacturing data from key trade partner China.
Commodities producers Vale and OGX drove Brazil's Bovespa index to notch its biggest one-day gain in more than a year while miner Grupo Mexico lifted Mexico's IPC index, tracking copper prices upward.
US President Barack Obama said on Saturday he would seek congressional authorization for punitive military action against Syria, delaying the potential attack that rattled investors last week.
"It's still an uncertain situation," said Pedro Galdi, a broker with SLW Corretora in Sao Paulo. "If there is an attack, investors are going to be worried about the impact on the region, on oil prices, on the global economy, but for now things look to be a bit calmer."
Brazilian shares received a further boost after purchasing managers index data on Monday showed China's manufacturing sector grew in August for the first time in four months.
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 rose for the third straight session, jumping 3.65 percent to 51,835.15, its biggest gain since July, 2012.
The index's gains were led by shares of OGX Petroleo e Gas Participacoes SA, which spiked 33.33 percent as bargain-hunters stepped in after the stock posted its second-biggest one-day decline on Friday.
The company said on Thursday that controlling shareholder Eike Batista sold 1.54 percent of outstanding OGX shares on Wednesday and planned to sell more.
Shares of mining firm Vale SA also rose 2.96 percent, while homebuilder PDG Realty gained 6.52 percent.
Mexico's IPC index jumped 1.61 percent to 40,129.04.
Chile's IPSA index edged up for a third straight session, led by a 1.78 percent gain in shares of conglomerate Copec.
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