By Laura Mandaro
Brazilian stocks eased off their Olympics-sparked euphoria after
the country secured the winning bid to host the 2016 Games, a first
for South America.
Brazil's Bovespa index was recently up 448 points, or 0.7%, at
60,898. After opening lower, the country's benchmark stock index
had reversed and then charged higher in the hours leading up to the
final decision, as Chicago and Tokyo got eliminated in earlier
rounds of voting by International Olympic Committee members.
The committee finally chose Rio de Janeiro over the other
finalist, Madrid. Ahead of the early-afternoon decision, the
Bovespa had rallied as much as 1.4% to 61,333.
The MSCI iShares Brazil exchange-traded fund (EWZ) gained 1.7%
to $67.15.
Airline shares propelled the Bovespa higher, supported by lower
oil prices and a rally in U.S. airline shares. The U.S.-listed
shares of TAM (TAM) rose 4.5%, while U.S. shares in Gol Linhas
Aereas (GOL) gained 3.6%. The Brazilian-listed shares led Bovespa
advancers.
The Amex Airline index gaining 2.5% after Continental Airlines
Inc. (CAL) said its consolidated and mainline traffic rose in
September for the first month since August 2008.
Steel shares also rallied.
The Brazilian real gained against the U.S. dollar, with one U.S.
dollar buying 1.7755 of the Brazilian unit versus 1.7820 late
Thursday. It had also opened lower.
As U.S. stocks struggled to post gains, Mexico's IPC index
reversed higher and rose 0.2% to 28,633. Chile's IPSA index tipped
up less than 1 point to 3,353.