Brazil stocks rise on Greece hopes; real near flat

SAO PAULO Feb 10 (Reuters) - Brazilian stocks advanced in early trading on Wednesday on continued hopes for a bailout of heavily indebted Greece, even as officials in Germany tempered that optimism.

Brazil's benchmark Bovespa stock index .BVSP added 0.41 percent to 64,985.47, in line with global markets as it tracked a third straight session of gains.

"The market is following the environment abroad," said Silvio Campos Neto, chief economist at Schahin bank in Sao Paulo.

Equities rose around the world on Tuesday on the possibility of a lifeline for fiscally-troubled Greece from its neighbors.

But a German official said on Wednesday that there is no decision on aid to Greece either settled or pending. For more see [ID:nLDE6191R6].

"There's still a lot of uncertainty," Neto noted. "People are waiting for details."

Brazil's currency, the real BRBY, weakened 0.22 percent to 1.85 to the dollar as the greenback, considered a safe haven in times of economic uncertainty, edged higher against a basket of major currencies .DXY.

Commodities traded nearly flat, with the Reuters-Jefferies commodities index .CRB dipping 0.14 percent near mid-day. The Bovespa index includes a number of companies tied to the trade in raw materials.

Leading gains, steelmaker CSN (CSNA3.SA) moved up 1.94 percent to 56.88 reais. Brazilian construction firm Camargo Correa said on Wednesday it will buy a 22 percent stake in Cimpor (CPR.LS), dimming prospects for CSN's own bid to take over the Portuguese cement maker. [ID:nLDE6190XN]

Fellow steelmaker Gerdau (GGBR4.SA) rose 0.97 percent to 24.99 reais and Usiminas (USIM5.SA) slipped 0.57 percent to 47.08 reais.

Vivo VIVO4.SA, Brazil's largest wireless carrier, gained 0.93 percent to 54.36 reais, after reporting fourth-quarter profit was virtually unchanged from a year earlier. [ID:nN10134167]

Among banks, Banco do Brasil (BBAS3.SA), Latin America's largest bank by assets, moved up 1.75 percent to 30.18 reais. Bradesco (BBDC4.SA) gained 0.48 percent to 31.17 reais.

Limiting gains, state-controlled energy company Petrobras (PETR4.SA), the most heavily-weighted stock in the index, slid 0.43 percent to 32.10 reais as crude oil CLc1 retreated.

Brazil's Congress began debating late on Tuesday whether to freeze funding to complete four key infrastructure projects of the company, after allegations of irregularities with procurement contracts. [ID:nN09106972]

Changes in yields on Brazilian interest rate futures contracts <0#DIJ:> were mixed, with short-term contracts largely ticking higher.

The yield on the contract due January 2011 DIJF1 edged to 10.28 percent from 10.26 percent. The yield on the contract due January 2012 DIJF2 inched to 11.4 percent from 11.42 percent.

Both were among the most active contracts of the morning.

Investors use the contracts to bet on trends in the country's benchmark interest rate, the Selic, currently at a record-low 8.75 percent. (Reporting by Luciana Lopez; Editing by Theodore d'Afflisio)