Brazil stocks jump to 3-month high, real gains

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SAO PAULO, Jan 5 (Reuters) - Brazilian stocks rose to a three-month high on Monday as rising risk appetite buoyed shares of mining company Vale and local steelmakers CSN and Usiminas, while a jump in oil prices lifted energy giant Petrobras.

The Bovespa index .BVSP of the Sao Paulo stock exchange jumped 3.17 percent to 41,518.7 points, its highest close since ending at 41,569 on Oct. 14. The index has surged nearly 15 percent over five straight sessions.

Mining company Vale (VALE5.SA) surged 6.9 percent to 28 reais, adding to the massive 9.7 percent surge the previous session as investors snapped up liquid Brazilian stocks.

Shares of state-run energy giant Petrobras (PETR4.SA) gained 2.3 percent to 25.10 reais as crude oil prices climbed more than 4 percent in London and New York above $48 a barrel. The stock jumped more than 7 percent on Friday.

Yield spreads on the Brazilian government's overseas bonds over comparable U.S. Treasuries, as measured by JPMorgan's EMBI+ index, fell, reflecting a decline in investors' risk aversion toward Brazilian assets. The index 11EMJ showed the country's bond spread narrowed by 16 basis points to 389.

Spreads for emerging market bonds as a whole dropped 19 basis points to 646.

Stock markets in Asia rose to a two-month high on Monday, as investors decided to shift into riskier assets on hopes for a global economy recovery.

Steelmaker CSN (CSNA3.SA) surged 8.9 percent to 34.55 reais, buoyed by hopes of an economic recovery and demand for riskier assets. Usiminas (USIM5.SA) climbed 6.5 percent to 30.60 reais, while Gerdau (GGBR4.SA) gained 5.5 percent to 17 reais.