The Ibovespa rebounded from its lowest level in two weeks as speculation that China is planning to increase its stockpiles of base metals lifted miner Vale SA, the world’s biggest producer of iron ore, and steelmakers including Gerdau SA.
Vale, whose main export market is the Asian country, was among the biggest contributors to the Ibovespa’s advance, following a global rally in the industry. A gauge of Brazilian materials producers climbed the most in a week as the Bloomberg Base Metals Three-Month Price Index advanced 1.7 percent.
The improved prospects for a sector that accounts for almost half of Brazil’s exports provided some relief Wednesday to investors on the local market amid concern the U.K. could be headed for an exit from the European Union. Investors will also look to a Federal Reserve announcement for clues to the likely timing of the next interest-rate increase.
“The mood is more positive everywhere today because of the good news from China,” said Alvaro Bandeira, the chief economist at the brokerage Modalmais in from Rio de Janeiro. “Beijing always acts to correct any imbalance of its economy and markets, and that benefits Brazilian assets.”