By Carla Mozee

Most major Latin American equity markets rose Monday, with advances fortified by a leap on Wall Street as investors appeared optimistic about quarterly earnings results.

Share prices in Mexico, Chile and Argentina accelerated as the S&P 500 Index climbed 2.3% and the Dow Jones Industrial Average (DJI) jumped 185 points, or 2.5%, ahead of an expected strong profit report from investment bank Goldman Sachs (GS) on Tuesday.

Also, Dow component and conglomerate General Electric Co. (GE) shares surged nearly 7% on positive analyst views before its results arrive on Friday.

'High optimism over this week's U.S. [second quarter] bank earnings reports...spurred a re-emergence in global risk appetite as Monday progressed," said strategists at RBC Capital Markets in a note late Monday.

Mexico's IPC equity index climbed 1.3% to 23,951.96, its highest close since July 3. The blue-chip gauge was aided by a 4.7% rise in shares of Kimberly-Clark de Mexico (KCDMY) after they reportedly were upgraded to buy from hold by Citigroup's Banamex unit, citing expectations that the consumer products maker will post better-than-expected quarterly earnings.

But shares of microlender Banco Compartamos fell 2.4% after reportedly being downgraded to sell from buy by Banamex, citing valuation concerns.

Shares of market heavyweight America Movil (AMX) picked up 0.3% and shares of Cemex (CX) rose 1.9%.

Argentina's Merval climbed 4.1%. Shares of steel tube maker Tenaris (TS) bounced 6.9% higher and shares of Petrobras Energia (PZE) rose 3.5%. Trading was closed in Argentina on Thursday for a holiday and on Friday as part of an effort by country officials to stem the spread of the H1N1 virus.

Chile's IPSA rose 1.4% to 3,126.10, as shares of SQM (SQM) rose 3%, retailer Falabella gained 5.1% and Banco Santander Chile (SAN) climbed 4.9%.

Brazil slips

But Brazil's benchmark lost earlier advances to finish slightly lower.

Brazil's closely watched Bovespa index slipped 34 points, or 0.7%, to 49,186.93,

Steel stocks, which have a more than 26% weighting on the benchmark, finished mostly lower. CSN (SID) slipped 0.9%, Gerdau (GGB) fell 1.8% and Usiminas slumped 5.5%.

Usiminas said second-quarter average market steel prices declined 15%, and that it wouldn't reach its target for a 20% increase in second-quarter sales, according to a Dow Jones Newswires report which cited a story from local news agency, Estado.

Preferred shares of mining giant Vale (RIO) rebounded to notch a rise of 0.7%. Unionized workers at Vale nickel operations in Ontario, Canada, staged a strike after rejecting a proposed renewal of their labor contract. Vale had already shut operations at its mine in Sudbury through the end of the month.

Shares of Petrobras (PBR) reversed losses for a rise of 0.4%, shaking off the impact of a drop in oil prices to below $60 a barrel. Oil prices extended their 10% drop in the previous week on persistent concerns about weak demand amid soft economic conditions.

Citigroup added Petrobras to its focus regional focus list. It also added discount retailer Lojas Americanas and telecom firm Oi (TNE).

Analysts Geoffrey Dennis and Jason Press also said a "correction" in regional stock markets has reached its expected range for a decline of 10% to 15% in the MSCI Latin America index.

"Although the mood has turned sour on worries over the timing of economic recovery, we see little more downside from here and expect regional markets to break out to the upside again later this summer," the analysts wrote in a note to clients.

The move higher in the markets should depend on confirmation of recovery in the U.S. and a bottoming out of corporate earnings in Latin America. Citigroup currently expects U.S. economic activity to return to growth in the third quarter.

Citigroup dropped Brazilian air carrier TAM (TAM) from its focus list. The shares, however, rose 1.5% and rival Gol (GOL) rose 0.9% as oil prices stumbled.

Lojas Americanas shares ended 0.1% higher while Oi fell 2.3%.