SAO PAULO: Brazilian stocks rose on Tuesday as hopes that China would further cut steel output lifted shares of miners and steelmakers for a second day.
The official Xinhua news agency reported on Sunday that Hebei province, which accounts for about a quarter of China's total steel output, plans to slash 31.86 million tonnes of steel and ironmaking capacity this year.
Shanghai steel futures jumped 7 percent overnight, lifting iron ore prices to their strongest level in over three weeks.
Shares of iron ore miner Vale SA were the biggest gainers on Brazil's benchmark Bovespa stock index . Steelmakers Cia Sider?rgica Nacional, Usinas Sider?rgicas de Minas Gerais SA and Gerdau SA also rose sharply.
Brazil's currency was nearly flat as bets on higher US rates offset expectations of inflows related to a $4 billion bond issuance by state-controlled oil company Petr?leo Brasileiro SA.
US President-elect Donald Trump's promises of more public spending and tax cuts have raised expectations that the US Federal Reserve could be forced to tighten policy this year more quickly than earlier thought.
He has also threatened to curtail trade flows with Mexico, driving the peso to a record low last week and leading the central bank to cushion the currency's decline.
The peso extended losses on Tuesday to a new historic low as traders avoided exposure to the currency ahead of a news conference by Trump on Wednesday, his first since defeating Democrat Hillary Clinton in a November vote.
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