Brazilian equities jumped more than 1.5 percent on Friday as solid gains on Wall Street and relative political calm helped lure investors back into local stocks, many of which have fallen dramatically in recent weeks. The Bovespa had climbed some 1.52 percent by mid-day, following a 1.63 percent gain on Thursday.
Elsewhere throughout Latin America, equities markets were also up, with Mexico's IPC index and Chile's IPSA index climbing 0.72 percent and 0.8 percent, respectively, buoyed by a strong day on Wall Street. Emerging markets worldwide have been hit hard by concern about a global trade war, with Brazil's benchmark Bovespa index among the major losers, falling almost 15 percent in the second quarter alone. Domestic issues, such as a highly uncertain presidential election scheduled for October, have also weighed on domestic equities.
But in recent weeks, investors have often jumped back into Brazilian stocks during times of geopolitical calm, amid bets that some sectors are oversold.