Brazil stocks rise on hopes for Greece resolution

SAO PAULO, March 3 (Reuters) - Brazilian stocks rose in early trading on Wednesday, as hopes that the Greek fiscal crisis could be nearing the end brought investors back to riskier assets.

The benchmark Bovespa index .BVSP added 1.33 percent to 68,683.34, tracking a fifth straight day of gains.

The country's currency, the real BRBY, traded flat at 1.783 per dollar. The real has strengthened the last three sessions against the dollar.

Greece's Cabinet on Wednesday decided to take new measures totaling 4.8 billion euros ($6.49 billion) to ensure it meets key fiscal targets this year, a government source said. For details see [ID:nATH005244]

Debt problems in Greece have exposed strains in the euro zone and roiled markets in recent weeks, particularly hitting riskier assets such as stocks around the world.

"It's all news about Greece," said Luiz Nunes, director of Claritas Wealth Management. "Hopefully we're getting to the end."

Data from the United States, the world's largest economy, also gave investors little reason to pause.

U.S. employers shed 20,000 private-sector jobs in February, fewer than in January and in line with expectations, and the country's service sector grew in February at its fastest pace in more than two years. [ID:nN03157515] and [ID:nN02164233]

The dollar weakened against the euro and a basket of major currencies, helping commodities. The benchmark Reuters-Jefferies index .CRB climbed 0.45 percent.

Among stocks, shares of mining company Vale (VALE5.SA) led gains. Vale, the world's largest iron ore producer, put on 1.47 percent to 46.16 reais.

State-controlled energy giant Petrobras (PETR4.SA), the most heavily-weighted stock in the index, rose 1.82 percent to 35.76 reais.

Brazil's lower house of Congress prepared to vote on changes to a capitalization plan for Petrobras, after having approved the basic text of the bill. The Senate still needs to add its approval. [ID:nN03224661]

Braskem (BRKM5.SA), Latin America's largest petrochemical company, added 0.93 percent to 12.99 reais. The company said on Wednesday its fourth-quarter loss narrowed as a strong Brazilian currency slashed foreign exchange-denominated debt servicing costs. [ID:nN03221518]

Steelmakers also rose. Gerdau (GGBR4.SA) added 1.38 percent to 27.22 reais, Usiminas (USIM5.SA) moved up 1.44 percent to 52.75 reais and CSN (CSNA3.SA) climbed 1.58 percent to 61.25 reais.

Yields on Brazilian interest rate futures contracts <0#DIJ:> ticked slightly higher in light trading.

The yield on the contract due January 2011 DIJF1 edged to 10.46 percent from 10.44 percent. The yield on the contract due January 2012 DIJF2 edged to 11.6 percent from 11.56 percent.

Both were among the most highly-traded contracts of the early session.

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 W Simon )