Brazilian stocks rose for a third day, with the Ibovespa benchmark gaining to a one-week high, as commodities producers rallied on optimism that Chinese government efforts to ease an economic slowdown are working.
Iron-ore producer Vale SA’s biggest gain in a month contributed the most to the stock gauge’s advance. Meatpacker Marfrig Global Foods SA sank the most since April 2013 after its offices were raided by police investigating corruption.
Exporters in Brazil are counting on foreign sales to cushion results as Latin America’s biggest economy is forecast to post its longest recession since the 1930s amid a corruption scandal, political infighting and credit-rating cuts. Companies including Vale, pulpmaker Fibria Celulose SA and meatpacker JBS SA are also benefiting after Brazil’s real tumbled 34 percent this year. The pace of the slowdown in Chinese factory output unexpectedly eased in September, a report showed Thursday, easing concern the world’s second-biggest economy will act as a drag on global growth.