Brazil Stocks Rise After U.S. GDP Shrinks Less Than Estimated

By Kara Wetzel

Jan. 30 (Bloomberg) -- Brazilian stocks climbed, erasing earlier declines, after the U.S. economy contracted less than economists estimated in the fourth quarter.

The Bovespa Index rose 0.1 percent to 39,690.33 at 8:40 a.m. New York time after falling as much as 1.1 percent earlier. Chile’s Ipsa rose 0.2 percent. The MSCI Emerging Markets Index declined 0.1 percent.

Gross domestic product in the U.S., the world’s biggest economy, contracted at a 3.8 percent annual pace in the fourth quarter. GDP was forecast to contract at a 5.5 percent annual pace, according to the median estimate of 79 economists surveyed by Bloomberg News. Projections ranged from declines of 3 percent to 7 percent.

Last Updated: January 30, 2009 08:41 EST