Latin American Stocks Rise With Oil Price Spike

THERESA BRADLEY

MEXICO CITY (AP) — Latin American stocks climbed to eight-month highs on Thursday as prices for the region's commodity exports gained, boosting hopes for a prolonged economic recovery.

Brazil's benchmark Ibovespa index jumped 2.4 percent to 53,041, its highest close since Sept. 19. Shares in iron ore producer Vale SA rose 1.7 percent to 32.90 reals, while state-run oil company Petroleo Brasileiro SA soared 2.7 percent to 34.65 reals amid a 2 percent surge in world crude prices. The two companies comprise nearly a third of the index.

Brazil's currency traded largely even at about 2.01 reals to the U.S. dollar after hitting a near eight-month high of 1.99 at midday on Wednesday. The currency has gained about 26 percent since its three-year low in December as the government sold billions in dollar reserves to weaken demand for the greenback.

The Finance Ministry this week confirmed that it has resumed dollar purchases — though it may not let the dollar slip much below the 2-real mark in order to keep Brazilian exports more competitive, RBC Capital Markets said in a note to investors.