EMERGING MARKETS-Mexican stocks hit record high, Brazil stocks lifted by commodities

 (Adds details from Mexico on bourse record high)
    By Sheky Espejo and Bruno Federowski
    MEXICO CITY/SAO PAULO, July 25 (Reuters) - Mexico's stock
market hit a fresh record high on Tuesday, boosted by
expectations of good earnings, while Brazil's stocks hit a
one-month high as commodity price gains lifted shares of local
blue-chips Vale SA and Petróleo Brasileiro SA.
    Mexico's S&P/BMV IPC stock index rose for the third straight
session, inching up by 0.09 percent from Monday, as data showed
the economy continuing to grow in May and retail sales climbing
by 4.1 percent on the year.
    Several of Mexico's biggest companies report earnings in the
next three days, and Carlos Gonzalez, head of analysis at
brokerage Monex in Mexico City, said the outlook was good.
    "We're still waiting for the most intense part of earnings
reports in Mexico and the trend is positive, with expectations
of growth of 15-16 percent in operational terms," he said.
    Gonzalez forecast the stock index could get to around 52,000
points in the next few days, before consolidating.
    In Brazil, shares in Vale, the world's largest
iron ore miner, rose after China-listed iron ore futures snapped
a three-day losing streak. Shares in Bradespar SA, a
key Vale shareholder, rose about 5.0 percent.
    Rising crude oil futures lifted shares of Petrobras
, as Brazil's state-controlled oil company is known,
after major producer Saudi Arabia vowed to reduce exports next
month to curb global oversupply.
    Gains on the benchmark index were limited by shares of
Fibria SA after the wood pulp producer posted a
surprising quarterly net loss as a weaker currency inflated its
    Operating profits rose, supported by higher pulp prices and
strong global demand, but analysts said that boost is likely to
fade in coming quarters.
    Most Latin American currencies seesawed as traders awaited
the U.S. Federal Reserve's policy decision to be announced on
    Money markets indicated a near-zero chance of an interest
rate increase from the U.S. central bank, and further Fed
interest rate hikes are not seen as likely until at least
December. That could foster demand for Latin American assets,
which typically lure investors with higher yields.
    Brazil's central bank will announce a rate decision on the
same day and traders widely expect it to cut rates by an
aggressive 100 basis points.
    In Mexico, shares in bottler and retailer Fomento Economico
Mexicano (Femsa) fell after it reported a drop in
quarterly profits, hurt by rising costs.
    The company's shares dropped 1.54 percent. 
    Key Latin American stock indexes and currencies at 0040 GMT:
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1060.36     -0.37     23.43
 MSCI LatAm                    2738.75       0.1     16.89
 Brazil Bovespa               65669.42      0.88      9.04
 Mexico S&P/BMV IPC           51713.18      0.09     13.30
 Chile IPSA                    5037.98      0.34     21.36
 Chile IGPA                   25162.37      0.33     21.36
 Argentina MerVal             21265.12     -0.21     25.70
 Colombia IGBC                10940.04      0.09      8.02
 Venezuela IBC               134583.50      1.55    324.48
 Currencies                              daily %     YTD %
                                          change    change
 Brazil real                    3.1662     -0.61      2.62
 Mexico peso                    17.765     -0.17     16.74
 Chile peso                      650.9      0.12      3.04
 Colombia peso                  3030.2     -0.11     -0.95
 Peru sol                         3.25     -0.12      5.05
 Argentina peso                17.4700     -0.06     -9.13
 Argentina peso                  18.09     -0.22     -7.02

 (Reporting by Bruno Federowski; Editing by G Crosse and Chris

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