By Laura Mandaro

Brazilian stock traders joined in the festive mood that took hold of the country Friday after it won a bid to host the 2016 Olympics, sending the benchmark equity index up over 1%.

Brazil's Bovespa index closed 713 points, or 1.2%, higher at 61,172. For the week, it's gained 1.4%.

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 early rounds of voting by International Olympic Committee members.

The committee finally chose Rio de Janeiro over the other finalist, Madrid. It will be the first time a South American country has hosted the Olympics.

The iShares MSCI Brazil exchange-traded fund (EWZ) gained 1.9% to $67.30.

Transportation 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 4.6%, while U.S. shares in Gol Linhas Aereas (GOL) gained 3.5%.

The Amex Airline index gained 2.1% after Continental Airlines Inc. (CAL) said its consolidated and mainline traffic rose in September for the first month since August 2008.

Cyrela Brazil Realty (CYRBY) was the top advancer on the Bovespa, followed by wireless telecommunications firm Vivo Participacoes (VIV).

The Brazilian real gained against the U.S. dollar, with one U.S. dollar buying 1.7760 of the Brazilian unit, down from 1.7820 late Thursday. The real had also opened lower.

Mexico's IPC index closed up 0.3% at 28,679 but slid 0.3% for the week.

Chile's IPSA index ended 0.1% lower but 0.9% higher for the week.

The S&P 500 Index (SPX) closed 0.5% lower on Friday and down 1.8% for the week.