Brazil stocks leap up on US inflation data

SAO PAULO, July 15 (Reuters) - Brazilian stocks jumped to a one-week high on Wednesday as data from the United States showed core inflation under control and manufacturing in New York state improving.

The benchmark Bovespa index .BVSP jumped 3.1 percent to 50,366.72 points, the first time it has broken the 50,000 barrier since July 7.

Investors in Brazil often look to American markets to gauge international sentiment and risk-taking. The Bovespa fell seven of the past nine sessions after disappointing economic data from developed economies stoked fears the global recession might last longer.

Although U.S. consumer prices rose at the fastest pace since July 2008, core inflation accelerated by only 0.2 percent -- slightly higher than median estimates.

"The Brazilian markets tend to follow the markets abroad," said Marianna Costa, an economist with Link Investimentos. Good news in the United States often translates to higher investor confidence in Brazil as well.

The Dow Jones industrial average .DJI advanced 1.76 percent in the morning to 8,507 points.

Yet the numbers underscore the continuing fragility of the global economy, Costa said.

"The magnitude of the recession is less today," she said. "But the numbers don't show a vigorous recovery. We're in a preliminary stage of the recovery."

Brazil's currency, the real (BRBY), rose 1.1 percent to 1.948 reais to the dollar. The gains reflected an overall decline in the greenback against a basket of major currencies to the lowest level in a month.