Brazil stocks, currency rally after US jobs data
(Updates to close)
SAO PAULO, Oct 5 (Reuters) - Brazil's benchmark stock index closed near a record high and the local currency surged on Friday as strong U.S. jobs data sent global markets higher, increasing investor appetite for riskier emerging market assets.
The Bovespa index .BVSP of the Sao Paulo Stock Exchange soared 3.17 percent to 62,318.72 points, tracking gains in global markets and boosted by energy and mining shares.
Brazil's currency, the real (BRBY: Quote, Profile, Research), jumped 1.15 percent to 1.804 per dollar, its strongest close since August 2000.
The real gained for a second session, lifted by strong dollar inflows and on hopes that a positive economic outlook in the United States will increase investment flows to Latin America's largest economy.
"We had a strong dollar inflow today and the market was celebrating a positive U.S. indicator," said Rodrigo Nassar, treasury desk manager for Hencorp Commor Corretora, a brokerage in Sao Paulo.
The Labor Department report showed the U.S. economy added more jobs in September than economists had expected. In addition, August and July jobs were revised higher, a change analysts said was even more significant.
Yield spreads of Brazil's overseas bonds over comparable U.S. Treasuries as measured by JPMorgan's EMBI+ index tightened, reflecting greater appetite for Brazilian assets. The index 11EMJ showed the country's bond spread narrowed 10 basis points to 162.
Interest rate futures <0#DIJ:> on the BM&F futures exchange in Sao Paulo also fell, indicating improved market sentiment. Continued...
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