Latin American stocks advanced on Friday as Brazilian stocks, buoyed by strong earnings, notched their best monthly performance in more than a year. The MSCI Latin American stocks index put on 0.68 percent, its ninth advance in the past 10 sessions. The Thomson Reuters Latin America total return index added 0.85 percent.
Brazil's benchmark Bovespa index rose 0.84 percent and registered a 10th straight session of gains. The Bovespa climbed 10.8 percent in July, marking its best month since May 2009. Among gainers on Friday were shares of retailer Lojas Renner, which put on 8.22 percent and hit a new all-time high. The company's second-quarter earnings, reported after the bell on Thursday, beat analyst expectations.
Embraer, the world's third-biggest jet maker, rose 4.45 percent and marked its highest close since October 2008. Analysts expect the company to report an increase in second-quarter profit because of a pickup in aircraft orders and cost controls. But Mexico's IPC index fell 0.48 percent, hurt by data showing the US economy slowed its pace of growth in the second quarter.
But a report showing that business activity in the US Midwest grew more than expected helped support stocks. The index fell around 1.5 percent for the week but rose 3.7 percent for the month of July. Leading Latin American wireless operator America Movil shed 1.94 percent while top local retailer Wal-Mart de Mexico lost 2.42 percent. Miner Grupo Mexico lost 0.71 percent.
Chilean stocks were supported by an unexpected drop in the unemployment rate during the second quarter on new jobs in manufacturing, retail and construction as the economy recovered from an earthquake, government data showed. Chile's blue chip IPSA index edged up 0.16 percent. Shares of airline LAN gained 4.25 percent. The company earlier this week reported a surge in January-June net profit. Retailer Falabella rose 0.99 percent.