Mexican and Brazilian stocks rose by the most in a month after solid US jobs data and manufacturing surveys in the United States and China boded well for Latin American exports. Mexico's benchmark IPC stock index added 1.08 percent to 45,768.49 points, back near a record high.
---- Mexico IPC climbs back near record high
Data on Friday showed US employment rose modestly in January and that job growth had been stronger than first reported the prior two months, while a separate survey showed factory activity hit a nine-month high in January. "We had some euphoria today with the US jobs data," said Mario Copca and analyst at brokerage CI, who was still sceptical that Mexican stocks could keep climbing past a record high earlier this month. Mexican stocks have risen about 12 percent since November, and high valuations have many analysts convinced that further gains are limited.
Still, the appetite of foreign investors has kept surprising local traders. Data from fund tracker EPFR showed Mexico-focused funds have taken in fresh money for 10 straight weeks. Shares of copper miner and railroad operator Grupo Mexico rose 3.33 percent, contributing most to the index's gains, after the company reported a 15 percent jump in fourth-quarter profit late Thursday.
Tycoon Carlos Slim's America Movil, Latin America's top mobile phone and pay TV provider, added 1.38 percent while broadcaster Televisa rose 3.1 percent. Brazil's benchmark Bovespa stock index rose for the third session in four, adding 0.99 percent to 60,351.16. Another survey showed China's manufacturing sector continued to expand. China is Brazil's top trading partner and the world's second biggest economy is a major buyer of Latin America's commodities, such as oil, iron and soybeans. Shares of widely-traded mining firm Vale SA rose 1.29 percent, contributing most to the index's gains.
The company said on Friday that the start of operations at a new mine helped drive fourth-quarter production of iron ore above the third quarter for the first time in nine years. State-controlled oil company Petroleo Brasileiro SA, known as Petrobras, added 2.1 percent, rebounding from a four-day, nearly 8 percent slide. Petrobras shares dropped in previous sessions after the company announced a fuel price rise that failed to ease investor concerns about the health of the company's finances. Redemptions from Brazil-focused stock funds hit their highest level in 36 weeks, EPFR data showed, as investors preferred investing in Mexico and Colombia.
Chile's IPSA index rose for the third straight session, adding 0.30 percent as Banco de Chile, the country's second-largest bank, rose 1.4 percent. Shares of pension company AFP Provida, which are not part of the IPSA index, fell 5.22 percent top US life insurer MetLife Inc said it agreed to buy the company for about $2 billion. The price was below what many investors were expecting.