Brazilian Stocks Gain Most in Two Weeks on Obama Stimulus Plan

By Alexander Ragir

Dec. 8 (Bloomberg) -- Brazilian stocks gained the most in two weeks on speculation the largest U.S. spending plan for public works since the 1950s may boost the global economy and revive demand for commodities.

Cia. Vale do Rio Doce, the world’s biggest iron ore miner, rose for the first time in six days as metals prices rebounded. Petroleo Brasileiro SA surged 5.5 percent as oil rallied on speculation spending on roads, bridges and repairing school buildings will boost demand for raw materials. Positivo Informatica SA surged 24 percent after Estado de S.Paulo reported Lenovo Group Ltd. and Dell Inc. are interested in buying the nation’s largest computer maker.

Brazil’s Bovespa Index rose 5.1 percent to 37,148.20 at 8:17 a.m. New York time. Standard & Poor’s 500 Index futures expiring in December surged 3.4 percent.

“The thing which is going to be positive is that at least a floor will be put under the U.S. slowdown, and by extension the rest of the world,” said Nick Fields, who helps oversee $11 billion in emerging-market stocks at Schroders Plc in London. “It’s got to come from the government because it’s not going to come from anyone else.”

Vale rose 5.1 percent to 22.60 reais. The Bloomberg Base Metals 3-Month Price Commodity Index gained 2.4 percent, halting a seven-day slide. Petrobras surged 99 centavos to 19.15 reais. Oil for January delivery rose as much as 6.5 percent to $43.47 a barrel on the New York Mercantile Exchange.

Obama said Dec. 6 he will boost investment in roads, bridges and public buildings to create or preserve 2.5 million jobs after companies cut payrolls at the fastest pace in 34 years.

“Certainly even nominal growth in the U.S. you can generate inflation and that would be a support for commodity prices,” Fields said in a telephone interview. “There’s cash to be used so it’s not difficult to generate a bounce. What’s more difficult is to get one that’s sustainable, which can be achieved depending on the scope of coordinated policies coming out of a new administration.”

Positivo surged 1.08 reais to 5.83 reais.

Executives from Lenovo and Dell visited the Brazilian company’s headquarters in the southern city of Curitiba, Estado said Dec. 6 in its printed edition.

Helio Rotenberg, Positivo’s president, told Estado the company has been approached by potential buyers, but there is “nothing concrete.”

To contact the reporter on this story: Alexander Ragir in Rio de Janeiro at aragir@bloomberg.net.