Brazil Stocks Advance on Rousseff Election Win, Commodity Rally

Brazil’s Bovespa stock index rose the most in almost a week as traders reduced bets for higher interest rates after President-elect Dilma Rousseff vowed to restrain spending following yesterday’s victory.

Homebuilders PDG Realty SA Empreendimentos e Participacoes and Rossi Residencial SA climbed after Rousseff pledged to limit government spending and carry on President Luiz Inacio Lula da Silva’s policies that lifted 21 million people out of poverty since 2003. All America Latina Logistica, Brazil’s biggest railroad company, led gains for companies that benefit from infrastructure investment. Vale SA and Usinas Siderurgicas de Minas Gerais SA advanced after Credit Suisse Group AG recommended adding the metals producers as the dollar weakens.