Brazilian stocks were up sharply after being battered for weeks on concerns that a global slowdown would throttle the region's largest economy.

Brazil's Ibovespa index was up a steep 8 percent to 31,811 in mid-afternoon trading. The nation's currency, the real, rose against the U.S. dollar.

The Mexican stock market also gained strongly Tuesday, with the main IPC index up 6 percent to 17,910 shortly before noon. The market closed at 16,869 on Monday.

Shares of Brazil's biggest companies have been pummeled by investors because of declining demand for the country's commodities such as steel, iron ore and soy.

Economists are lowering Brazil's 2009 economic-growth projections to 3 percent or less, down from nearly 4 percent.

Chile's IPSA was up 0.8 percent to 2,366 and Colombia's IGBC index was gaining 3.3 percent to 6,676.

"The Latin American stocks in general are recovering, joining the markets in other regions where we see fairly positive numbers," said Elizabeth Palma of Tanner brokers in Santiago, Chile.

"That reaction corresponds mostly to the buying of good opportunities," she said, "but also to the fact that some important commodities companies are reporting good results, well above expectations."

Argentina's Merval was an exception but appeared to be reducing losses. By mid-afternoon it was down 1.1 percent at 830 in early afternoon trading.

"The Argentine market remains weak and that's a domestic problem," Palma said.

"That market continues to be punished, because there are comments that no one is supporting the government's decision" to nationalize nearly $30 billion in private pension funds, she said.