Brazil's Bovespa stock index rose more than 3 percent on Friday as weak jobs data in the United States relieved market fears of bigger US interest rate hikes by the Federal Reserve. The Bovespa finished 3.45 percent up at 25,732 points. "The data in the US favours Brazil," Luiz Roberto Monteiro, an equities analyst at the Souza Barros brokerage in Sao Paulo, said. Foreigners bought Brazilian stocks heavily on Friday, traders said.
Only 146,000 jobs were created in the United States in January, fewer than expected, while the number of new jobs for the previous three months was revised lower, the US Labour Department said.
Equities traders expect relatively low interest rates in the United States and high rates in Brazil to continue luring capital to Latin America. Sharp rate hikes in the United States, which traders say are unlikely, would drain capital away from Brazil.
Stocks gained across the board.
Bellwether Tele Norte Leste Participacoes, which makes up about 12 percent of the index, was among the biggest gainers and rose 6.26 percent to 39.90 reais.
Meanwhile, the real weakened 0.35 percent to 2.614 per dollar. The central bank bought dollars heavily on the spot market under a plan announced in December that has boosted foreign reserves by more than $4.5 billion.
Still, the real's movements were limited by the upcoming Carnival holiday, when markets will close Monday and Tuesday.
"Traditionally the market is fearful ahead of Carnival and people don't like to make bigger bets," said Francisco Carvalho, head of currencies at the Liquidez brokerage.
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