Brazil stocks, real surge on Citigroup rescue plan

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SAO PAULO, Nov 24 (Reuters) - Brazilian stocks surged on Monday snapping five straight sessions of losses and the national currency rallied as investors scooped up depressed emerging market assets after the U.S. government announced a rescue package for banking giant Citigroup.

The Bovespa index .BVSP of the Sao Paulo stock exchange vaulted 9.4 percent to close at 34,188.83, led by blue chips like Petrobras and Vale as well as banking shares such as Itau and Bradesco. The index had plunged 13.2 percent over the previous five sessions.

Widely traded stocks Petrobras and Vale led the market higher as prices of oil, copper and other commodities jumped.

Bank shares rocketed after the U.S. government said it will inject $20 billion of capital into Citigroup and agreed to shoulder most of the potential losses on $306 billion of high risk debt.

Brazil's currency, the real (BRBY), strengthened 5.5 percent to 2.332 per U.S. dollar, rebounding sharply after closing at its weakest level since July 2005 on Friday.

"This is an important sign for a turnaround, not that the crisis will end, but at least it won't get worse," said Marcelo Voss, chief economist at the Liquidez brokerage in Rio de Janeiro.

Interest-rate futures <0#DIJ:> on the BM&F commodities and futures exchange fell, reflecting the optimism in Brazil's currency and stock markets.

On the stock exchange, state-run energy giant Petrobras (PETR4.SA) jumped 13.85 percent to 19.23 reais, benefiting from the surge in crude oil prices in New York and London.

Mining company Vale (VALE5.SA) gained 12.96 percent to 23.44 reais as copper prices surged because of higher imports from China and firmer equity markets. Prices of other industrial metals also gained.

Among banks, Itau (ITAU4.SA) soared 15.86 percent to 23.60 reais, while Unibanco UBBR11.SA was up 17.54 percent at 13.20 reais amid a rally in global banking shares after the Citigroup rescue. Bradesco (BBDC4.SA), Brazil's largest private sector bank, rose 12.69 percent to 21.85 reais, while state-run Banco do Brasil (BBAS3.SA) climbed 9.55 percent to 12.5 reais. (Reporting by Stuart Grudgings and Jenifer Correa; Editing by Theodore d'Afflisio)