Brazilian Stocks Rise as Petrobras Follows Crude Prices Higher

(Bloomberg) -- Brazilian stocks advanced as Petroleo Brasileiro SA followed crude higher, offsetting losses in Vale SA after a trade report from China dimmed the outlook for exporters.

Petrobras, as the state-run oil producer is known, contributed the most to the Ibovespa’s gains. Poultry producer Marfrig Global Foods SA was the best performer on the stock benchmark. Vale, the world’s biggest iron-ore producer, fell the most in a month after China’s customs administration said imports unexpectedly declined in September.

The Ibovespa has gained 74 percent in dollar terms this year on optimism that a new government will be able to win backing from lawmakers for measures to fight inflation and the recession. While speculation mounts that China, Brazil’s biggest trading partner, will allow the yuan to weaken further as exports slump and growth falters, concern about the impact the move could have over Brazil may be excessive, says Joao Pedro Brugger, an economist at Leme Investimentos.

"Investors are taking in what China’s data really mean, and now we see the market improving a little bit,” Brugger said in a phone interview. “Investors seem to be positive about Brazil.”

The Ibovespa rose 0.2 percent to 61,118.58 at close of trading in Sao Paulo as 34 of its 58 stocks advanced. The gauge earlier lost as much as 1.3 percent. Petrobras gained 2.4 percent, and Vale fell 2.8 percent. Marfrig rose 5.5 percent. 

Oil traded above $50 a barrel in New York after a report showed declines in U.S. fuel stockpiles and crude inventories.

--With assistance from Denyse Godoy To contact the reporters on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net, Vinícius Andrade in São Paulo at vandrade3@bloomberg.net. To contact the editors responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net, Sebastian Boyd, Jessica Brice