Brazilian stocks rose for a third day after the country’s biggest steel and mobile-phone companies reported profit that beat analyst estimates and U.S. economic data bolstered the outlook for low interest rates.

Gerdau SA led gains for steelmakers after the company said it expects metal demand to stay strong next year. Vivo Participacoes SA, Brazil’s biggest mobile-phone company, climbed the most in a week as profit doubled on a decline in borrowing costs. Gafisa SA, Brazil’s second-largest homebuilder, rose 3.9 percent on the outlook for faster growth this year. Petroleo Brasileiro SA gained 2 percent after Peru said the oil company made a “large” natural-gas discovery in that country.

“Gerdau profit was very good, with margins rising strongly,” said Alvaro Bandeira, director of Rio de Janeiro- based Agora Corretora, Brazil’s second-biggest brokerage. Profit at Gerdau and Vivo “were a very good signal and that’s why we’re seeing good gains.”

The Bovespa index added 1.4 percent to 64,815.72, extending a three-day rally to 5.3 percent. The BM&FBovespa SmallCap Index gained 1.8 percent. The real added 0.2 percent to 1.7165 per U.S. dollar at 4 p.m. In other Latin American markets, Mexico’s Bolsa rose 1 percent, Chile’s Ipsa added 0.1 percent, Colombia’s IGBC gained 1.7 percent and Argentina’s Merval slid 0.9 percent.

Fewer Americans than forecast filed claims for unemployment benefits last week, a sign job losses are slowing as the economy begins to recover. The productivity of U.S. workers surged in the third quarter at the fastest pace in six years as companies squeezed more from remaining staff to boost profits.

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