MEXICO CITY (AFX) - Brazil stocks surged on Friday, as concerns about higher U.S. interest rates abated with comments by U.S. Federal Reserve Chairman Ben Bernanke.
The benchmark Ibovespa stocks index was up 4.1 percent at 34,285 points, up from Wednesday's close of 32,941. Brazilian financial markets were closed Thursday for a holiday. In 2006, the Ibovespa index is up 2.3 percent.
Bernanke said that rising energy and commodity prices could spill over into inflation, but the softer tone of the speech caused an upswing in equity markets around the world.
The recent flight of foreign investors from emerging markets in attributed in large part to expectations of rising U.S. interest rates.
The Brazilian real on Friday closed at 2.254 per dollar, stronger than Wednesday's close of 2.279.
Meanwhile, Mexican stocks advanced for a third consecutive session Friday, adding to the market's biggest one-day gain in six years the previous session.
The benchmark IPC index of the 35 most-traded companies rose 0.6 percent, closing at 18,042.
The Mexican peso closed slightly weaker against the dollar Friday at 11.447, down from 11.426 at Thursday's close.
In Latin America's third-largest economy, Argentine stocks changed little Friday on light trading as the country celebrated a World Cup victory. The Merval ended up about 0.1 percent at 1,578 points, while the broader General Index fell 0.3 percent to close at 75,075 points.
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