• Petrobras and Bradesco contribute most to gauge’s advance
  • Iron-ore miner Vale follows gains in commodity prices

The Ibovespa advanced for a second day as the new government scored its first victory in Congress, fueling optimism that more measures aimed at shoring up Brazil’s finances and restoring growth will be approved.

Lenders Itau Unibanco Holding SA and Banco Bradesco SA contributed the most to the benchmark equity index’s advance. State-controlled oil producer Petroleo Brasileiro SA and iron-ore miner Vale SA rose as raw-materials prices climbed.

The Ibovespa has gained 15 percent this year on bets that the removal of President Dilma Rousseff would pave way for a new administration better able to build support for measures to combat the worst recession in a century. Acting President Michel Temer, who took office on May 12, on Tuesday announced proposals that include limits to government spending and changes to social security.

"Investors are relieved," Paulo Henrique Amantea, an analyst at the brokerage Guide Investimentos, said from Belo Horizonte, Brazil. "It’s a positive signal, which gives the new economic team time to work on the recovery strategy."

The Ibovespa advanced 1.2 percent to 49,915.09 at 10:38 a.m. in Sao Paulo. Itau added 1 percent and Bradesco rose 1.2 percent. Petroleo Brasileiro rose 2.9 percent, and Vale climbed 0.9 percent.

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