UPDATE 1-JPMorgan ups Mexico stock portfolio, cuts Brazil's

Fri Feb 1, 2008 1:24pm EST
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MEXICO CITY, Feb 1 (Reuters) - JPMorgan said on Friday it upgraded its Mexican stock investment portfolio to "overweight," highlighting shares of cell phone operator America Movil (AMXL.MX: Quote, Profile, Research) (AMX.N: Quote, Profile, Research), while cutting Brazil's to "neutral."
JPMorgan said it does not expect Mexican corporate earnings to decline dramatically this year and expects them to remain at healthy levels.
Broadcaster Grupo Televisa (TV.N: Quote, Profile, Research) TLVCPO.MX, Banorte (GFNORTEO.MX: Quote, Profile, Research) bank, and builder Urbi (URBI.MX: Quote, Profile, Research) also caught JPMorgan's eye.
Two recent cuts in U.S. Federal Reserve rates are also expected to give Mexico's central bank some monetary policy flexibility, the brokerage added. "Look for Mexican (policy) easing as early as August."
As for Brazil, JPMorgan said there is no substantive reform agenda or room for interest rate cuts in 2008.
Chile remains as Latin America's "safe haven" while Argentina and Colombia could present good growth opportunities this year, it said. (Reporting by Lizbeth Salazar, Cyntia Barrera Diaz, editing by Gerald E. McCormick)