EMERGING MARKETS-Latam stocks end year down

MEXICO CITY (Dec 30): Latin American stocks edged upward in a session
marked by thin volume on Friday as investors closed their books and
warily eyed 2012.

The MSCI Latin American stock index added 0.05
percent, though the index was down about 21 percent for the year after
fears of a widening European debt crisis turned investors away from
riskier assets in 2011.

"Because of Europe everyone is nervous
about the first quarter," said Patricia Berry, a strategist at brokerage
Intercam in Mexico City.

Market players are awaiting a verdict
from ratings agency Standard & Poor's, which put nearly the entire
euro zone on a downgrade warning this month. They will also keep their
eyes on an upcoming French debt auction as investors remain nervous
about debt-laden European countries' ability to handle their finances.

Banks snapped up cheap loans last week after the European Central Bank
injected nearly half a trillion euros into the market in a bid to ease a
growing credit crunch.

Some hoped the unprecedented injection
of funds would boost the purchases of debt, but an auction on Thursday
of 10-year bonds in Italy was disappointing, with investors demanding
yields of nearly 7 percent.

"It's already very evident Europe is
in recession and nobody really knows the impact in terms of GDP that is
going to have on China and the United States," Intercam's Berry said.

Brazilian markets were closed for the New Year holiday.

Mexico's IPC index fell 0.29 percent but was down about 3 percent for
the year. The United States is Mexico's biggest trading partner and
investors have been cheered by signs the economy of its northern
neighbor is gaining momentum.

America Movil, controlled by
Mexican billionaire Carlos Slim, slipped 0.38 percent but was offset by
retailer Wal-Mart de Mexico, which added 0.53 percent.

Chile's IPSA index advanced 0.13 percent but ended the year down 15.2 percent. - Reuters