Latin American stocks closed higher on Friday on added expectations that European Union policy makers will agree on measures to tackle the eurozone debt crisis by next Wednesday. The MSCI Latin American stock index increased 2.57 percent, but it still posted its first weekly loss since late September.
"Yesterday you had a more pronounced fall, and today you see a bit of that returning," said Marianna Costa, of Link Investimentos in Sao Paulo. "It's widely hoped the Europeans will vote on measures, but the market is still sceptical over what is going to come about."
Global markets have been focused on the eurozone's debt crisis, especially on deep divisions between France and Germany over how to scale up a eurozone rescue fund ahead of a closely watched summit this Sunday in Brussels. The announcement of a second summit meeting to follow on Wednesday added to market optimism, as well as a statement from German government sources on Friday that there were no serious differences between Germany and France - the region's two biggest economies.
The market has swung wildly over the last few weeks on alternating pessimism and optimism that policymakers will offer a bold plan to stem the two-year-old crisis. Market players worry that without a plan Greece could default, which would hurt banks holding its debt and cause widespread market turmoil.
Brazil's benchmark Bovespa stock index added 2.31 percent on Friday, and it posted a gain of 0.41 percent for the week, a period marked by volatile traded. Volume was below normal, reflecting the lack of developments in Europe, according to Costa.
Commodities companies helped lead the index higher, with state-controlled oil company Petrobras adding 2.39 percent, and heavyweight mining company Vale gaining 1.77 percent. Mexico's IPC index gained 1.82 percent after two days of declines. Gains were led by America Movil, the telecommunications firm controlled by Mexican billionaire Carlos Slim, which rose 3.36 percent. In Chile, the benchmark IPSA index rose 1.29 percent. Banco Santander Chile gained 4.69 percent, and retailer Falabella rose 2.05 percent.
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