Bovespa Gains as Steelmaker Rally Overshadows Inflation Concern

Brazil’s Bovespa stock index gained, extending the biggest weekly increase in a month, as steelmakers rallied, overshadowing concern the central bank may fail to contain inflation next year.

Gerdau SA, Latin America’s largest steelmaker, jumped the most in a week after Morgan Stanley boosted its rating on the stock. Vale SA, the iron-ore producer whose top export market is China, advanced as investors speculated the Asian country will boost consumption. Gains were limited as Gafisa SA, Brazil’s second-biggest homebuilder, dropped amid concern inflation will rise if President-elect Dilma Rousseff pressures the central bank to lower borrowing costs next year.