Nov. 2 (Bloomberg) -- Brazilian stocks trading in the U.S. rose, led by Vale SA and Petroleo Brasileiro SA, after manufacturing expanded in the U.S. and China and Credit Suisse Group AG boosted its 2009 forecast for the Bovespa index.

Vale and Petrobras’s American depositary receipts climbed more than 1 percent as the Reuters/Jefferies CRB Index of 19 raw materials advanced.

“We remain above consensus for 2010 earnings and continue to see upside risk mainly from” rising oil prices, higher-than- estimate economic growth in Brazil and the outlook for iron ore pricing negotiations next year, Credit Suisse analyst Emerson Leite wrote.

The iShares MSCI Brazil index gained 1.1 percent to 69.59 at 4:06 p.m. New York time. Financial markets in Brazil, Mexico and Colombia are closed today for a holiday. Chile’s Ipsa Index fell 0.8 percent and Argentina’s Merval Index rose 1.4 percent.

Petrobras’s ADRs advanced 1.1 percent to $46.71 as crude oil rose 1.5 percent to $78.12 a barrel in New York. Brazilian opposition leaders may abandon a probe into the oil company this week, O Estado de S. Paulo reported yesterday, citing Alvaro Dias, the senator who filed the request to investigate.

Vale, the miner who said last week it sees “impressive” growth demand in China, jumped 2.4 percent to $26.11. Chinese manufacturing expanded at the fastest pace in 18 months, according to a purchasing managers’ index released by HSBC Holdings Plc today and also a government-backed PMI released yesterday. Manufacturing in the U.S. expanded in October at the fastest pace in more than three years.

The Reuters/Jefferies CRB Index added 1.2 percent.

Bovespa Forecast

The Bovespa lost 5.4 percent last week, the most since February. It entered a so-called correction on Oct. 28, defined as a drop of at least 10 percent from a high, after the government imposed the 2 percent tax to stem gains in the real. The slump pared a monthly gain to less than 0.1 percent.

The index may climb to 67,000 by the end of the year, helped by the outlook for earnings, an “attractive” valuation and the effects of the global economic recovery, Credit Suisse said.

The forecast is higher than an August estimate of 64,500, according to Credit Suisse’s Leite. The analyst said he’s turning “increasingly cautious” on Mexican shares, citing fiscal reform voting, a potential downgrade in the country’s sovereign debt and the market’s valuations.

In Chile, Cia. Sudamericana de Vapores SA, Latin America’s largest container ship operator, rose 0.2 percent to 438 pesos. The Baltic Dry Index, a measure of commodity shipping costs, extended last month’s 40 percent surge as steadying Chinese steel prices boosted demand for raw materials to make the alloy.

Banco Macro SA, Argentina’s largest bank by market value, rose the most on the Merval index, climbing 5.4 percent to 11.7 pesos.

“There is some speculation that banks will show good results when they begin to report third-quarter earnings this week,” said Adrian Mayoral, an analyst with Mayoral Bursatil brokerage in Buenos Aires. Lenders should benefit from gains in their bond portfolio holdings, he said.

To contact the reporter on this story: Tian Huang in New York at thuang57@bloomberg.net.

Last Updated: November 2, 2009 16:22 EST