Ibovespa Rises as China Economic Data Boost Outlook for Usiminas
The Ibovespa rose, extending a rally that yesterday pushed the equity gauge into a bull market, after a report showing industrial output climbed more than forecast in China boosted commodities exporters.
Usinas Siderurgicas de Minas Gerais SA, the steelmaker known as Usiminas, gained the most on the MSCI Brazil/Materials index, which was the best performer among 10 industry groups. MMX Mineracao e Metalicos SA, the iron-ore producer founded by former billionaire Eike Batista, rose after saying it agreed to sell a stake in its Sudeste port for $400 million.
The Ibovespa climbed 0.5 percent to 54,514.14 at 10:22 a.m. in Sao Paulo, extending gains since this year’s low on July 3 to 21 percent. Fifty stocks on the measure rose today while 21 fell. The real strengthened 0.1 percent to 2.2733 per dollar.
“The Ibovespa is clearly reacting to positive economic data in China,” Luciano Rostagno, the chief strategist at Banco Mizuho do Brasil in Sao Paulo, said in a phone interview. “That’s good news for companies that export to China, and also helps to improve the sentiment about the Brazilian market in general.”
China’s industrial output rose 10.4 percent in August from a year earlier, the National Bureau of Statistics said. That compares with the median estimate for 9.9 percent growth among economists surveyed by Bloomberg and a 9.7 percent gain in July.
Usiminas climbed 1.9 percent to 10.49 reais. MMX advanced 0.4 percent to 2.29 reais.
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