The MSCI Latin American index rose 1.56 percent, its biggest one-day gain in a month, as it recovered from its lowest close since September. Brazil led gains as it bounced higher from its cheapest levels since last July.

However, the Bovespa saw the lowest volume this month in the last two sessions, and analysts said a downward trend that has dominated this month could persist.

"The Bovespa has recovered somewhat," said Alvaro Bandeira, director at brokerage Ativa. "But the volume was really low, so that is not really inspiring."

Concerns about slowing global growth, a slump in commodity prices and worries Europe's debt crisis is deepening have knocked nearly 7 percent off the MSCI index this month.

Helping offset negative sentiment on Tuesday, Goldman Sachs issued a note raising its forecast for oil prices as well as predicting a increase in copper purchases by the Chinese in the coming months.

Global data also provided some relief from fears of slowing growth. German business sentiment was surprisingly firm in May while US data showed single-family home sales rose unexpectedly in April.

The United States and Europe are major trading partners with Latin America.

Brazil's benchmark Bovespa stock index rose 1.59 percent as shares of Oi, the country's largest telecom group, jumped 13.26 percent after the company said it would simplify its complex shareholder structure as part of a plan to cut costs.

Shares of heavyweight commodities companies also rose. State-run oil company Petrobras rose 1.06 percent while Vale, the worlds biggest iron ore producer, gained 0.98 percent.

Brazilian stocks have also been hurt by expectations of further interest-rate hikes by the country's central bank, and uncertainty about further hikes is expected to keep weighing.

Rising inflation has been one of the factors that have increased the divergence of Brazilian stocks from their US counterparts.

Mexico's IPC index rose 0.48 percent to 35,382.56 points. The IPC has been struggling to stay above 35,000 points after falling to its lowest since October last week.

Shares of billionaire Carlos Slim's America Movil added 1.2 percent after local media reported that a Mexico City judge granted an injunction to hold off a $1 billion regulatory fine the company is fighting.

The stock slumped to a one-year low since the fine was announced last month and other moves by regulators suggested the company could face more pressure in Mexico.

The rebound in commodity prices lifted miner Grupo Mexico 1.63 percent.

Traders were wary that gains could be fleeting. Commodities and US stocks may be headed for a further correction as the US Federal Reserve prepares to withdraw some of its support from markets at the end of June.

Many investors have pulled over to the sidelines.

"We are not seeing clients come out at these levels. It is all just traders making intraday bets," he added. "Institutional investors would rather lose out on a rally at this stage than open themselves up to a steep correction."

Chile's IPSA index slipped 0.16 percent as industrial conglomerate Copec shed 0.54 percent.

Copyright Reuters, 2011