EMERGING MARKETS-Mexican stocks rise on US fiscal talk hopes
* Chile's Cencosud jumps on Colombian store acquisition plan
* Mexico's IPC up 0.7 pct, Chile's IPSA down 0.3 pct
MEXICO CITY, Nov 20 (Reuters) - Mexican stocks rose on Tuesday, backed by optimism on fiscal negotiations in Washington, with shares having the most exposure to the U.S. economy rising on bets of solid demand ahead in Mexico's top trading partner.
Mexico's IPC stock index rose 0.67 percent to 41,103 points after being closed on Monday for a holiday, catching up to Wall Street's gains on optimism about talks to tackle a looming fiscal crisis in the United States.
Mexican stocks rose for the second consecutive session as they bounced back from a more than six-week low last week.
Shares of conglomerate Alfa, which controls auto-parts subsidiary Nemak, jumped more than 5 percent to a record high. Top U.S. cement supplier Cemex gained 3.6 percent.
U.S. lawmakers over the weekend suggested they could reach a deal to stave off the looming series of tax rises and spending cuts that will begin to take effect in the new year.
"They will reach a deal, and I like the market now," said Gerardo Roman, head of trading at brokerage Actinver in Mexico City.
Mexico sends nearly 80 percent of its exports to the United States and could suffer most among Latin America's economies if a fiscal impasse slows U.S. growth.
But so far, stronger-than-expected U.S. demand has supported Mexico in a wider global slowdown. The IPC is trading about 4 percent off of a record high and it has been the second best performing Latin American stock market behind Colombia in 2012.
Brazil, Latin America's biggest stock market, was closed for a holiday. Chilean stocks <.IPSA > slipped 0.3 percent as energy firm Enersis fell 2.2 percent.
Shares in Chilean retailer Cencosud rose 2.29 percent after shareholders on Tuesday approved a $1.5 billion capital increase destined for the purchase of French retailer Carrefour's Colombian assets.
Latin American stock indexes at 1800 GMT Stock indexes daily year-t
Latest change %
change MSCI LatAm 3,553.06 -0 -1.36
Brazil Bovespa 56,450.86 Closed -0.53
Mexico IPC 41,103.41 0.67 10.86
Chile IPSA 4,178.57 -0.3 0.02
Chile IGPA 20,535.19 -0.26 2.01
Argentina MerVal 2,296.75 0.06 -6.74
Colombia IGBC 14,227.05 0.52 12.33
Peru IGRA 20,229.10 -0.39 3.88
Venezuela IBC 383,877.5 -0.02 228.00
(Reporting By Michael O'Boyle; Editing by Grant McCool)
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