Brazil stocks rise as Rio wins Olympic bid
(Updates markets following selection of Rio for Olympics)
SAO PAULO, Oct 2 (Reuters) - Brazilian stocks turned positive on Friday as investors hoped the choice of Rio de Janeiro to host the 2016 Olympics would boost development in Latin America's largest economy.
Airlines in particular jumped, with investors seeing a potential increase in air traffic as Rio was set to become the first South American city to host the summer games.
Tam (TAMM4.SA) jumped 3.87 percent to 23.89 reais per share as rival GOL (GOLL4.SA) sprang 1.69 percent to 18.10 reais.
The benchmark Bovespa index .BVSP was up 1 percent to 61,067 after a morning in negative territory due to profit-taking and investor wariness over disappointing payroll data in the United States, the world's largest economy.
"The rise in the index was 100 percent focused on the Olympics," said Luiz Eduardo, a trader at Banco Modal.
Other gainers on the Olympics news included real estate companies. Cyrela (CYRE3.SA) vaulted 4.81 percent to 23.32 reais and Gafisa (GFSA3.SA) rose 2.9 percent to 26.24 reais.
Brazil's currency, the real (BRBY), firmed 0.22 percent to 1.783 percent against the U.S. dollar in afternoon trading.
Rio and Madrid were the last two cities in contention to host the 2016 summer games after front-runner Chicago and Tokyo were knocked out in the first two rounds of voting.
Yields on Brazilian interest rate futures contracts <0#DIJ:> largely ticked downward.
The yield on the contract due January 2011 DIJF1 fell to 10.22 percent from 10.35 percent. The yield on the one due January 2012 DIJF2 fell to 11.35 percent from 11.55 percent. Those contracts were among the most highly-traded of the day. (Reporting by Luciana Lopez and Ana Nicolaci da Costa; Editing by James Dalgleish)
