Oct. 9 (Bloomberg) -- Brazilian stocks rose, giving the Bovespa index its biggest weekly gain since July, after analysts said earnings growth will accelerate as the economy rebounds from its first recession since 2003.

BM&FBovespa SA, Latin America’s biggest securities exchange, rose for a fifth day as JPMorgan Chase & Co. said it will benefit from increased share offerings and stock trading. Banco do Brasil SA, the region’s biggest bank, jumped 2.1 percent, leading a rally for financial companies on the prospect that banks will gain most from faster growth. Cia. de Concessoes Rodoviarias, Brazil’s biggest toll-road operator, rose to its highest in 15 months on speculation it will benefit from infrastructure spending before the 2016 Rio de Janeiro Olympics.

Brazil “is the most clear case of an emerging middle class which will be a boon for banks and financial services and things tied to infrastructure building,” said Uri Landesman, who oversees $2.5 billion at ING Investment Management Inc. in New York, in a Bloomberg Television interview. “I don’t think people have fully appreciated how different Brazil could look in five to ten years than how it looks today.”

The Bovespa index added 0.5 percent to 64,071.01. Two stocks on the index gained for every one that fell. For the week, the index has gained 4.7 percent, the most since the week of July 17. The BM&FBovespa Small Cap index added 0.7 percent. Mexico’s Bolsa rose 0.5 percent, Chile’s Ipsa advanced 1 percent and Argentina’s Merval gained 0.9 percent. Markets in Argentina, Brazil, Chile and Colombia will be shut Oct. 12 for a holiday.

JPMorgan said it remains bullish on the Brazilian stock market, citing the economic outlook, inflows and earnings upgrades. The bank’s strategists, ranked the best in Institutional Investors magazine for Latin America, recommended investors buy Brazilian domestic cyclical stocks such as Banco Bradesco SA and BM&FBovespa.

Rate Outlook

Brazilian policymakers may start raising interest rates in January as growth accelerates and an earlier increase in borrowing costs is good for stocks because it removes uncertainty over the timing, JPMorgan strategist Ben Laider wrote in a note to clients dated yesterday.

Bradesco rose 1 percent to 35.90 reais. BM&FBovespa gained 0.7 percent to 13.85 reais. Banco do Brasil climbed 2.1 percent to 30.88 reais.

CCR added 0.5 percent, its ninth consecutive gain. Rio’s victory over Chicago, Madrid and Tokyo will help sustain Brazil’s growth by injecting $51.1 billion into Latin America’s largest economy through 2027 and add 120,000 jobs annually through 2016, according to studies by a Sao Paulo business school for the Ministry of Sports. Brazil also plans to spend $11 billion on infrastructure.

Mexico Stocks

The Bolsa rose, adding to its first weekly gain in three weeks as mining companies advanced. Nearly two stocks rose for every one that fell. Industrias Penoles SAB, the world’s largest dedicated silver producer, advanced 1.6 percent. Cia Minera Autlan SAB, North America’s largest manganese producer, added 0.2 percent after Ixe Grupo Financiero analyst Rodrigo Heredia said “the worst is over’ and sales will rise 21 percent in the third quarter over the same period a year ago.

Grupo Aeroportuario del Centro Norte SAB, the smallest of Mexico’s non-government airport operators, gained 2.3 percent after the company was upgraded to “buy” from “hold” at Banco Santander SA.

Wal-Mart de Mexico SAB declined 0.9 percent to 47.35 pesos, halting five days of gains. “Third-quarter results were not way better than what the market was expecting, so people are taking advantage and taking profit,” Mexico City-based Joaquin Ley, an analyst at Santander, said in a phone interview.

To contact the reporters on this story: Alexander Ragir in Rio de Janeiro at aragir@bloomberg.net; Emily Schmall in Mexico City at eschmall@bloomberg.net

Last Updated: October 9, 2009 17:25 EDT