* Brazil outperforms on local earnings

* Slowing U.S. second quarter growth hits Mexico

* Bovespa gains 0.84 pct, Mexico's IPC down 0.48 pct

(Updates to close)

SAO PAULO/MEXICO CITY (Reuters) - Latin American
stocks advanced Friday as Brazilian stocks, buoyed by strong
earnings, notched their best monthly performance in more than a
year.

The MSCI Latin American stocks index put on
0.68 percent, its ninth advance in the past 10 sessions. The
Thomson Reuters Latin America total return index
added 0.85 percent.

Brazil's benchmark Bovespa index rose 0.84 percent
and registered a 10th straight session of gains. The Bovespa
climbed 10.8 percent in July, marking its best month since May
2009.

"Brazilian fundamentals are strong," said Romeu Vidale of
Concordia brokerage.

Among gainers Friday were shares of retailer Lojas
Renner , which put on 8.22 percent and hit a new
all-time high.

The company's second-quarter earnings, reported after the
bell on Thursday, beat analyst expectations.

"Lojas Renner delivered EBITDA and operational margins
consistently above our estimates and the market consensus,"
wrote analyst Juliana Campos with Ativa brokerage.

Embraer , the world's third-biggest jet maker,
rose 4.45 percent and marked its highest close since October
2008.

Analysts expect the company to report an increase in
second-quarter profit because of a pickup in aircraft orders
and cost controls.

But Mexico's IPC index fell 0.48 percent, hurt by
data showing the U.S. economy slowed its pace of growth in the
second quarter.

Mexico sends about 80 percent of its exports to the United
States, which is the world's largest economy and a major
influence on Latin America.

"We are seeing a slower GDP number. We are getting out of
the market at the current levels," said Carlos Alonso, a trader
at brokerage Interacciones in Mexico City.

But a report showing that business activity in the U.S.
Midwest grew more than expected helped support stocks.

The index fell around 1.5 percent for the week but rose 3.7
percent for the month of July.

Leading Latin American wireless operator America Movil
shed 1.94 percent while top local retailer Wal-Mart
de Mexico lost 2.42 percent.

Miner Grupo Mexico lost 0.71 percent.

Chilean stocks were supported by an unexpected drop in the
unemployment rate during the second quarter on new jobs in
manufacturing, retail and construction as the economy recovered
from an earthquake, government data showed.

"The U.S. GDP figure ... sent everything down this
morning," said Sebastian Rauff, a trader with the Scotia Bank
brokerage in Santiago. "But at the local level the employment
figure was a pleasant surprise," he added.

Chile's blue chip IPSA index edged up 0.16
percent.

Shares of airline LAN gained 4.25 percent. The
company earlier this week reported a surge in January-June net
profit.

Retailer Falabella rose 0.99 percent.
(Reporting by Luciana Lopez in Sao Paulo and Michael O'Boyle
in Mexico City; Additional reporting by Aluisio Alves in Sao
Paulo and Brad Haynes in Santiago; Editing by Dan Grebler)