5 Min Read
(Rewrites with Mexico's record high, adds quotes, updates prices)
* Mexico's IPC closes at record high
* Brazil Bovespa hits highest level in over a month
* Chile's IPSA flat, down 1 percent on year
By Danielle Assalve and Jean Luis Arce
SAO PAULO/MEXICO CITY, Dec 10 (Reuters) - Latin American stocks rose on Monday, with Mexico's IPC stock index closing at a record high as positive expectations about Mexican fiscal policy and economic growth drove share prices to their sixth consecutive day of gains.
Mexican stocks pushed past the 43,000 barrier for the first time, closing at 43,134.51 while Brazil's benchmark Bovespa stock index rose 1.3 percent to its highest level in more than a month.
Last week, Mexico's new finance minister, Luis Videgaray, presented the 2013 budget, in which he envisaged 3.5 percent growth and a balanced budget.
In Mexico, balanced budgets are required by law - excluding debt at state oil firm Pemex. Factoring in Pemex investment, a deficit of 2 percent of gross domestic product is forecast for 2013.
"Our market has been buoyed by these positive economic expectations ... and the possibility of reforms next year," said Carlos Gonzalez, head of strategy at Monex financial group in Mexico City. "It also helps that the budget was balanced."
Telecommunications giant America Movil, owned by Mexican billionaire Carlos Slim, drove gains in the IPC, adding 1.82 percent, while broadcaster Grupo Televisa lost 0.59 percent.
Brazil's Bovespa jumped on news that industrial output and retail sales in China rose in November at the fastest pace in eight months, despite a sharp slowdown in exports.
China is Brazil's biggest trading partner and a key purchaser of Latin American commodities exports such as iron ore, soy, copper and petroleum.
"China has shown a sequence of positive data in recent months, indicating that its growth slowdown is behind us," said Felipe Rocha, an analyst at the Omar Camargo brokerage in Curitiba.
Preferred shares of iron-ore miner Vale rose 1.38 percent, while oil producer OGX, owned by billionaire Eike Batista, saw its value jump 8.76 percent.
Brazil's Bovespa is up just 4.4 percent in 2012, compared with a gain of more than 16 percent in Mexico's IPC index and a nearly 13 percent rise in the U.S. S&P 500 index.
Investors have been concerned over heavy government intervention in Brazil's private sector and lackluster economic growth, while jitters over fiscal negotiations in the United States have sapped foreign demand for local shares.
Chile's IPSA index was flat. The index has lost about 1 percent this year.
Latin America's key stock indexes at 2305 GMT:
MSCI LatAm 3,695.57 0.97
Brazil Bovespa 59,248.23 1.3
Mexico IPC 43,134.51 0.79
Chile IPSA 4,135.71 -0.03
Chile IGPA 20,318.72 -0.02
Argentina MerVal 2,520.28 1.62
Colombia IGBC 14,500.30 0.51
Peru IGRA 19,908.02 -0.15
Venezuela IBC 419,926.88 -1.14
(Reporting by Danielle Assalve, Jean Luis Arce; Writing by Gabriel Stargardter; Editing by Tim Dobbyn)