Markets

Brazilian Stocks Snap 3-Day Skid, Mexican Index Hits New High as Miners Rally With Alcoa Results

Latin American markets are higher in late trading, with shares of mining stocks rallying after U.S. aluminum producer Alcoa ( AA ) beat analyst forecasts for Q4 revenues on improving prices for the industrial metal.

Today's gains reversed a three-day slide for the Brazilian Ibovespa index while carrying the Mexican IPC to a new record high. In particular, shares of mining companies are benefitting from AA forecasting a 7% rise in global demand this year as China's economic rebound gains traction following stimulus measures by its new government leaders.

Demand in China, the world's largest aluminum user, should grow 11% in 2013 to 23 million metric tons, Alcoa CEO Klaus Kleinfeld said during a conference call last night. He also forecast consumption acclerating in Brazil, India and Russia this year. Global demand advanced 6% in 2012, according to the company.

Here's where the regional markets stand today:

- Ibovespa was up 109.79. Now up 184.6 (+0.3%) to 61,312.45.

- IPC (Mexico City) was up 164.12. Now up 179.4 (+0.4%) to 44,749.1.

- Santiago Index IPSA up 16.94 (+0.45%) to 3,814.71

- Merval Buenos Aires was up 47.57. Now up 38.4 (+1.3%) to 3,056.4.

In company news, ADRs of Brasil Foods S.A. ( BRFS ) are up more than 2% at around $22.10 but off a 52 week high of 422.52 this afternoon following an upgrade of the meat and poultry company to Buy from Hold at TheStreet.com.

TheStreet.com analysts cited several strengths for the upgrade, saying BRFS' revenue growth and "reasonable" debt levels coupled with its rising stock price over the past year outweigh sub-par growth in net income.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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