MEXICO CITY, Oct 22 (Reuters) - Brazilian stocks rose to

their highest in seven months on Tuesday after

weaker-than-expected U.S. payrolls data supported the view that

the Federal Reserve may maintain its accommodative monetary

policy into next year.

Brazilian stocks have been recovering from a four-year low

hit in July as investors bet the worst of an economic slowdown

has passed. Mexican stocks fell off a record high at the start

of the year and have been pressured by slowing growth there.

* Brazil's benchmark Bovespa stock index gained 0.68

percent to close at its highest since March 18 and just above a

key resistance level of 56,400. The level could spur

profit-taking, but if stocks can rise higher, they may see

extended gains.

* Data on Tuesday showed U.S. employers added fewer workers

than expected in September, suggesting the world's largest

economy may not be strong enough to warrant a slowdown in the

Fed's economic stimulus program, which has supported demand for

global equities.

* Iron ore exporter Vale SA advanced 1.33

percent, after the world's biggest miner BHP Billiton

upgraded its full-year iron ore output target, raising hopes

that Vale would also see better results.

* The optimism also helped steelmaker Companhia Siderurgica

Nacional SA climb 4.11 percent.

* Preferred shares of state-run oil company Petroleo

Brasileiro SA, known as Petrobras, fell 1.75 percent

as investors took profits on a more than 5 percent jump in the

previous session after following the conclusion of a Brazilian

offshore oil field auction.

* Mexico's IPC index rose 1.16 percent. The IPC has

been trading in an increasingly narrow range in recent weeks.

Most major companies will report earnings later this week.

* Mining firm Grupo Mexico advanced 3.05

percent though shares of telecommunications firm America Movil

, controlled by billionaire Carlos Slim, fell 0.5

percent.

Latin America's key stock indexes at 0000 GMT:

Stock indexes daily % YTD %

change change

Latest

MSCI LatAm 3,505.80 0.89 -7.69

Brazil Bovespa 56,460.38 0.68 -7.37

Mexico IPC 40,813.48 1.16 -6.62

Chile IPSA 3,894.86 0.08 -9.45

Chile IGPA 19,163.01 0.1 -9.05

Argentina MerVal 5,616.31 -0.81 96.77

Colombia IGBC 14,313.23 -0.49 -2.74

Peru IGRA 16,285.81 2.32 -21.06

Venezuela IBC 1,990,723 1.38 322.27

.36