Ibovespa Futures Rise as China Data Boost Brazil Export Outlook

Ibovespa futures climbed as data showing China’s manufacturing strengthened more than forecast boosted the economic outlook for Brazil’s top trading partner.

Natura Cosmeticos SA (NATU3), the biggest cosmetics maker in Brazil, may be active after posting third-quarter earnings that missed estimates. Eternit SA (ETER3), a construction-materials manufacturer, may move after saying it plans to buy back as many as 2 million voting shares in one year.

Ibovespa futures contracts expiring in December climbed 0.7 percent to 54,985 at 9:18 a.m. in Sao Paulo. The real declined 0.4 percent to 2.1995 per dollar. In China, the preliminary 50.9 reading for a Purchasing Managers’ Index released by HSBC Holdings Plc and Markit Economics compared with a 50.4 median estimate of analysts surveyed by Bloomberg. Readings above 50 indicate expansion.

“Brazilian equities will probably follow the more favorable outlook for China’s growth,” Banco Bradesco SA’s economic team wrote in a note to clients today.

The Ibovespa entered a bull market Sept. 9 after rising 20 percent from this year’s low on July 3 through that day. The gauge is still down 15 percent in dollar terms this year, compared with a decline of 2.2 percent for the MSCI Emerging Markets Index of 21 developing nations’ equities.

Trading volume of stocks in Sao Paulo yesterday was 6.45 billion reais, compared with a daily average of 7.61 billion reais this year through Oct. 22, according to data compiled by the exchange.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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