Latam stocks rise on Spanish bank hopes

Latin American stocks rose on Friday after sources told Reuters Spain was expected to request aid for its troubled banks, but analysts were sceptical a months-long sell-off in riskier assets was coming to an end. Brazil's benchmark Bovespa stock index rose a slight 0.51 percent to 54,4429.85, but that was enough to clinch its best weekly gain in more than three months, with a nearly 2 percent advance.
"It was a quite lukewarm session today, the market is awaiting the weekend to see what will happen in Europe. The investors are expecting to see a possible recapitalization of the Spanish banks," said Pedro Paulo da Silveira, an economist at Tov brokerage. "The market now is optimistic expecting some action, and if it doesn't come, it will suffer even more" he said.
Brazilian stocks have shed 21 percent from an intraday high in March on growing concerns Europe's debt troubles could detonate a global financial crisis. The Bovespa index climbed back above key support at 53,800 on Friday. Analysts said volume remained low, casting doubt on the conviction that drove stocks higher this week. "In a stable situation, it would seem that the market has found itself with attractive price to earnings ratios," said Felipe Casotti, a manager with Maxima Asset in Rio de Janeiro.
"But the situation abroad is very undefined, so what seems cheap now could suddenly become expensive. This situation creates a lot of hesitance in the market, and the word of the day is caution." Shares in Brazil's financial exchange BM&FBovespa rose 2.9 percent while Vale, the world's biggest iron ore producer, added 0.86 percent. The Bovespa is currently facing resistance at 54,800 points, according to a report published by BB Investimentos on Friday.
Mexico's IPC index firmed 0.21 percent to 37,323.91 points as Corona beer brewer Modelo added 2.37 percent. Mexico's central bank kept interest rates unchanged at 4.5 percent on Friday, and leaned back from an interest rate cut as policymakers ramped up concern that a weak peso could fan inflation. Chile's IPSA index rose 1.52 percent as industrial conglomerate Copec rose 3.24 percent.