Chile stocks up on US market, peso at 1-year high

By Aaron Nelsen

SANTIAGO, Nov 4 (Reuters) - Chile's stocks surged nearly 2 on Wednesday, boosted by earlier rises in the U.S. equities market and a rebound in the banking and retail sectors.

The blue-chip IPSA .IPSA closed 1.7 percent higher at 3,347.01, while the all-market IGPA .IGPA closed 1.4 percent up at 15,766.92.

"The stocks that fell most over the last few days rebounded from earlier losses," said Rodrigo Andaur, head of research with FIT Research Corredores de Bolsa. "At the same time, third-quarter company earnings have investors expecting even better results in the fourth quarter."

Rising global markets also contributed to Wednesday's gains, Andaur added.

Leading the IPSA higher was Banco Santander Chile STG.SN, the nation's largest private sector bank, up more than 3 percent at 29.00 pesos, while Chilean retailer La Polar LAP.SN climbed 2.6 percent to close at 2,732.00 pesos.

Also closing higher was Chilean industrial conglomerate Copec COP.SN, up 2.4 percent to 7,249.6 pesos.

Earlier in the day, Chile's peso CLP=CL rose to fresh 1-year highs against a weaker U.S. dollar and in line with positive global bourses.

The peso firmed 0.6 percent to close at 527.70/528.00 per dollar from Tuesday's close of 531.00/531.30.

The peso has nearly recovered the 22.3 percent it lost in 2008 during the worst of the financial crisis. (Editing by James Dalgleish)