Brazilian stocks rose on Friday, led by mining giant Vale on expectations of steady demand for iron ore and energy company Petrobras' confirmation of the potential of a major oil find. Brazil's Bovespa stock index climbed 0.5 percent to 53,736.17. The index is heading for its third straight week of gains, rising 1 percent in the period.
Data on US jobs sent mixed signals to investors, with Brazilian stocks surging nearly 2 percent in early trading after figures showed that employers in the world's largest economy cut fewer jobs than expected in May. Later, the market pared gains as concerns grew that the 9.4 percent US unemployment rate in May, the highest since 1983, signalled the economy was still weak and didn't warrant a rally in stocks.
The real weakened 0.7 percent to 1.956 per US dollar, its second decline in three sessions. Interest-rate futures rose broadly after rallying in recent days on expectations an improved economic scenario in Brazil and abroad may stoke inflation in the years ahead.
In the stock market, oil giant Petrobras rose 0.5 percent to 34.27 reais. Late on Thursday, the company said a third well in the area of its massive Tupi field confirmed estimates of a potential of between 5 billion and 8 billion barrels of recoverable light oil and natural gas. Vale gained 1.9 percent to 33.03 reais.
Itau Securities on Friday raised its target for the company's stock at the end of 2009 to 43 reais from 38 reais and maintained an "overweight" recommendation on the stock on expectations of steady iron ore demand from China and on hopes a recovery in world economies will boost metals prices. Gerdau climbed 1.8 percent to 22.65 reais, while CSN gained 2.1 percent to 48.90 reais as optimism over metal prices also helped stoke Brazilian steelmakers.
Brazil's second-largest private sector bank, Bradesco, rose 1.1 percent to 30.30 reais. The bank said on Friday it agreed to buy Banco ibi from clothing retailer C&A for about 1.4 billion reais in stock to expand its credit card business. Food processor Sadia, which is being taken over by larger rival Perdigao, lost 0.6 percent to 4.81 reais.
Sadia said on Friday it agreed to sell its 60 percent stake in Investeast, which owns a processing plant in Russia, to its partner in the venture for $77.5 million. Brazil's second-largest airline, Gol Linha Aereas, fell 0.7 percent to 9.87 reais. The company said occupancy rate in international and domestic flights fell to 57.9 percent in May from 58.7 percent the previous month and was sharply lower than the 65.4 percent a year earlier.