Brazil's stock market rose for a fourth day on Friday as rate cut hopes in the United States helped fuel demand for high-yield emerging market securities, while the local currency traded flat. The Bovespa index of the Sao Paulo Stock Exchange rose 1.37 percent to 63,006.16 points, extending a four-day, 6.6 percent winning streak.
Federal Reserve Chairman Ben Bernanke said late on Thursday strains in the financial markets in recent weeks had dimmed the outlook for the US economy, raising speculation over a further cut in benchmark US interest rates in December.
The Bovespa index closed in October at an all time high of 65,317 points and had lost nearly 10 percent this month through Monday, before rising every session since then. On the stock market, banking shares gained as expectations of lower US rates helped boost investor sentiment toward the financial services industry.
Banco do Brasil, Latin America's largest bank by assets, surged 10.42 percent to 31.8 reais, Itau jumped 5.88 percent to 49.5 reais and Bradesco rose 1.72 percent to 56.9 reais.
Braskem, Latin America's largest petrochemical company, jumped 6.56 percent to 15.75 reais. Braskem reached an agreement to take over stakes held by state-controlled oil company Petrobras in five petrochemical firms. Petrobras will boost its stake in Braskem to 25 percent from 6.8 percent as part of the asset swap.
Petrobras shares, the most heavily Bovespa index, fell 2.04 percent to 71.90 reais as oil prices tumbled 2.5 percent in London and 2.7 percent in New York on concerns over a possible rise in Opec production next week.
Bolsa de Mercadorias e Futuros soared 22 percent to 24.4 reais in its market debut as investors rushed to buy a stake in Latin America's largest derivatives market. The shares were sold at the top end of the price range for the initial public offering late on Wednesday.
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