Brazil Stocks Rise Most in 6 Weeks on Petrobras, Bank Lending

The Bovespa stock index gained the most in six weeks as Petroleo Brasileiro SA surged after oil prices pared a decline and an expansion in bank lending bolstered economic growth prospects.

Petroleo Brasileiro SA, Brazil’s state-controlled oil company that fell 30 percent this year, gained on speculation the selloff was overdone. PDG Realty SA Empreendimentos & Participacoes and Rossi Residencial SA led a gain for homebuilders after mortgage lending fueled 19.4 percent bank loan growth in September from a year ago. The Bovespa’s gain was limited as steelmakers tumbled after ArcelorMittal, the world’s biggest producer, forecast a fourth-quarter profit decline because of falling steel prices and rising costs.