LATIN AMERICAN MARKETS: Brazilian Stocks Ease Off Olympics Euphoria

By Laura Mandaro

Brazilian stocks eased off their Olympics-sparked euphoria after the country secured the winning bid to host the 2016 Games, a first for South America.

Brazil's Bovespa index was recently up 448 points, or 0.7%, at 60,898. After opening lower, the country's benchmark stock index had reversed and then charged higher in the hours leading up to the final decision, as Chicago and Tokyo got eliminated in earlier rounds of voting by International Olympic Committee members.

The committee finally chose Rio de Janeiro over the other finalist, Madrid. Ahead of the early-afternoon decision, the Bovespa had rallied as much as 1.4% to 61,333.

The MSCI iShares Brazil exchange-traded fund (EWZ) gained 1.7% to $67.15.

Airline shares propelled the Bovespa higher, supported by lower oil prices and a rally in U.S. airline shares. The U.S.-listed shares of TAM (TAM) rose 4.5%, while U.S. shares in Gol Linhas Aereas (GOL) gained 3.6%. The Brazilian-listed shares led Bovespa advancers.

The Amex Airline index gaining 2.5% after Continental Airlines Inc. (CAL) said its consolidated and mainline traffic rose in September for the first month since August 2008.

Steel shares also rallied.

The Brazilian real gained against the U.S. dollar, with one U.S. dollar buying 1.7755 of the Brazilian unit versus 1.7820 late Thursday. It had also opened lower.

As U.S. stocks struggled to post gains, Mexico's IPC index reversed higher and rose 0.2% to 28,633. Chile's IPSA index tipped up less than 1 point to 3,353.