Brazil stocks gain on U.S. GDP data; real weakens

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SAO PAULO, Aug 28 (Reuters) - Brazilian stocks rose on Thursday as investors snapped up shares in Itau and other financial firms after news of better-than-expected growth in the United States, which also boosted steelmakers Gerdau, Usiminas and CSN.

The Bovespa index .BVSP of the Sao Paulo Stock Exchange rose 1.55 percent to 56,382.22 points, adding to a 2.1 percent surge the previous session.

The U.S. economy grew at a 3.3 percent annual rate in the second quarter, higher than the 2.7 percent expected in a Reuters survey and much stronger than the 1.9 percent previously reported by the government.

The report eased concerns of a slowdown that would reduce demand for Brazilian exports and cut investment flows to emerging markets.

"The fear of further losses from the credit crisis still exists, but there was some relief from that today," said Roni Lacerda, an equity funds manager at Mercatto Gestao de Recursos.

Brazil's real (BRBY) weakened 0.68 percent to 1.633 per dollar after the U.S. growth data raised expectations the Federal Reserve may have to hike rates late in 2008 or early in 2009 to cool the economy and prevent an upswing in inflation.

Higher U.S. rates, in general, tend to lure funds away from Brazil and other emerging markets.

Interest-rate futures <0#DIJ:> on the BM&F commodities and futures exchange in Sao Paulo were mixed, with the shortest-dated securities rising on expectations domestic rates may continue to rise to contain resurgent inflation.