Brazilian stocks rose on Friday after unexpectedly soft US jobs data eased concerns of a Federal Reserve interest rate hike next week. The benchmark Bovespa stock index gave up almost half of its early gains, but still finished a healthy 1.1 percent higher at 37,848 points in its third day of gains, helped by the banking sector.
On the Sao Paulo Stock Exchange, stocks in Unibanco bank soared 3.6 percent to 15.7 reais and No 1 private bank Bradesco rose 2.4 percent to nearly 74 reais. Both banks will release second quarter results next week.
Stocks in heavyweight mining firm CVRD, rose 2.1 percent to 45.6 reais.
Shares in Bovespa's most traded company, state oil giant Petrobras, ebbed 0.5 percent to 45.7 reais as world oil prices fell.
The Brazilian real erased modest early gains to close 0.2 percent weaker at 2.183 per US dollar, with traders saying data showing a slump in Brazilian industrial output, new currency rules and a swing from gains to losses on the US stock market also affected the real.
"The setting changed overseas and that affected us here," said Tarcisio Rodrigues, foreign exchange director at Paulista bank.
Nevertheless, the real's retreat was only marginal and some traders like Miriam Tavares of AGK brokerage said they were optimistic about emerging assets in general.
US employers added a fewer-than-expected 113,000 jobs in July and the jobless rate jumped unexpectedly to 4.8 percent, bolstering expectations for an interest-rate pause by the Federal Reserve next week.
Higher US rates normally lead to an outflow of investor cash from emerging markets like Brazil.
But volume was weak as some exporters abstained from selling dollars awaiting the outcome of government measures allowing them to leave part of their earnings abroad.