Brazilian stocks rose to the highest level in a week after commodity prices advanced and steelmaker Cia. Siderurgica Nacional SA’s profit topped analyst estimates, bolstering the earnings outlook for material producers.

CSN, as Brazil’s third-biggest steelmaker is known, and rival Gerdau SA jumped more than 3 percent. Petroleo Brasileiro SA and Vale SA, Brazil’s largest oil and mining companies, rose as a weaker U.S. dollar heightened the appeal of commodities. Centrais Eletricas Brasileiras SA gained the most in two months on speculation the utility was moving closer to paying 10 billion reais in overdue dividends.

The Bovespa index added 2 percent to 63,912.57. The index of the 63 most-traded stocks entered a correction last week, losing more than 10 percent from a peak, after the government imposed a so-called IOF tax of 2 percent on foreign purchases of equity and fixed-income securities. It has pared losses since the tax was announced to 5 percent.

“Earnings season is giving support for gains,” said Jose Alberto Baltieri, who helps manage about $460 million at BES Ativos Financeiros in Sao Paulo. “Despite the scare after the IOF tax, investors are seeing that among emerging markets Brazil stands out and earnings are showing that.”

The BM&FBovespa SmallCap Index gained 1.7 percent. The real rose 1.4 percent to 1.7207 per U.S. dollar. Latin American markets maintained gains after the U.S. central bank restated today its intention to keep rates “exceptionally low” for “an extended period” as long as inflation expectations are stable and unemployment fails to decline.

Mexico’s Bolsa index added 1.9 percent, Chile’s Ipsa increased 1.7 percent and Argentina’s Merval climbed 1.7 percent. The MSCI Emerging Markets Index jumped 2.5 percent.

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