Ibovespa Rises Third Day as China Growth Boosts Brazil Exporters
The Ibovespa (IBOV) rose for a third day as a report showing Chinese industrial output expanded faster than forecast boosted the outlook for Brazil’s top trading partner.
Vale SA, the world’s largest iron-ore producer, contributed the most to the benchmark index’s advance. Steelmaker Gerdau SA rallied to a three-month high. Cia. Energetica de Minas Gerais, Brazil’s second-biggest power utility, fell after saying it will pay 1.4 billion reais for a stake in Renova Energia SA.
The Ibovespa rose 0.1 percent to 48,995.16 at 10:31 a.m. in Sao Paulo. The real climbed 0.3 percent to 2.2783 per dollar. The Bloomberg Base Metals 3-Month Price Commodity Index rose 1.6 percent. China’s factory production increased 9.7 percent in July from a year ago, government data showed today, compared with the 8.9 percent median estimate among economists surveyed by Bloomberg.
“The outlook for global growth, especially for emerging markets, is improving,” said Rogerio Freitas, a partner at hedge fund Teorica Investimentos in Rio de Janeiro. “The China fears had been scaring investors off emerging economies, and we’re seeing some of that fear begin to fade.”
The Ibovespa surged 3.1 percent yesterday, leading gains among 94 major equity benchmarks tracked by Bloomberg after data showed imports increased more than forecast in China. The gauge is up 1 percent this week.
Vale gained 0.6 percent to 30.11 reais today. Gerdau rose 1.1 percent to 15.45 reais. Cemig, as Cia. Energetica is also known, dropped 1.4 percent to 20.33 reais.
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