CARACAS, July 11 - Venezuelan President Hugo Chavez counts Argentina as a close ally and has frosty ties with Mexico, so naturally he favored the South American nation in a dispute between the two countries on Wednesday.

Hours before kick-off, Chavez predicted Argentina would beat Mexico in a semi-final of the Copa America, Latin America's most prestigious soccer tournament being hosted by Venezuela.

"We are South Americans and we have our heart with South America," Chavez said in a speech at a sports stadium a day after Brazil reached the final.

"With Argentina surely going to win today, we will have an amazing final to crown the tournament. That is the ideal final, Argentina-Brazil," he added.

Mexicans may be heartened because Chavez's previous forecasts have been wrong.

Before the tournament, he told his Brazilian counterpart that perennial underdogs Venezuela would be the surprise of the tournament, face the five-time world champions and beat them 3-0.

Venezuela did not progress far enough to meet Brazil in the tournament.

Chavez, an enthusiastic baseball player in a nation that has until recent years shown little interest in soccer, said the tournament had never been better organized.

His government has used windfall oil revenue to spend $1 billion on stadiums.

The tournament has generally been a success despite many fans' complaints that the government appeared to hoard tickets for its supporters and last-minute construction work that left debris piled inside venues.