Brazil's stocks recovered some loses on Friday as local markets interpreted US inflation data as mild, reducing concerns over a possible interest rate hikes by the world's largest economy.
The Sao Paulo Stock Exchange's benchmark Bovespa index rose 1.14 percent to 18,611.2 points, while the nation's currency, the real, strengthened 1.3 percent to 3.092 per greenback.
Investors breathed a sigh of relief after the release of weaker-than-expected US consumer price data for April.
Traders said the previous day's bargain-hunting was extended as the figures did not carry any nasty surprises.
"Brazil suffered too strong a correction recently, which is incompatible with our view that US rates will rise very gradually," said Marcelo Mesquita, a capital-markets research director at UBS in Sao Paulo.
"The Bovespa index could easily rise back to 25,000 points even if US rates go up to 2 percent a year."
Brazilian assets have lost considerable ground in the past few weeks on worries a US rate hike would take the shine off investments in emerging markets.
The Bovespa is 16 percent lower for the year and the real has lost over 6 percent of its value in the same period.
Oil price concerns were also at the forefront of investors' minds, as crude prices rose above $41 per barrel in New York, hitting new record highs.
Analysts fear the Brazilian government will not let state oil company Petrobras adjust domestic prices to reflect higher international rates. These worries were reinforced on Friday after government officials made comments indicating domestic oil prices would rise minimally, if at all.
Shares of Petrobras fell 2.7 percent to 73.20 reais.
Among the top gainers of the session were shares of Telesp Celular, which rose 9.5 percent to 8.10 reais after the wireless operator announced a restructuring.
Blue-chip telecommunications stock Tele Norte Leste Participacoes (Telemar), which has a 13 percent weighting in the Bovespa index, rose 1.7 percent to 32.32 reais.
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