- Rally in nation's top trading partner signals state support
- Benchmark equity gauge climbs to highest level in a month
Brazil’s stocks led gains in the Americas as a rally in the nation’s top trading partner bolstered appetite for commodity shares.
The Ibovespa rose to a one-month high as a late-day advance in China signaled state support. State-controlled oil producer Petroleo Brasileiro SA jumped with crude. A measure of energy companies in the MSCI Brazil Index climbed 4.1 percent.
“Brazilian assets are benefiting from the better global mood and bets that the Chinese government will take action to support its economy,” Lauro Vilares, an analyst at brokerage Guide Investimentos, said from Sao Paulo.
Equities in developing nations climbed toward the highest level this month and currencies rose as the rally in Shanghai eased concern about market turmoil in China. Emerging-market shares had tumbled to a six-year low in August on concern that a further slowdown of the Asian country would dim demand for commodities. Raw-material companies account for a quarter of Brazil’s equity gauge.
The Ibovespa added 1.7 percent to 48,148.27 at 11:19 a.m. in Sao Paulo, extending a three-day advance to 3.7 percent. The real rose 0.8 percent to 3.8334 per dollar.