Brazil's benchmark Ibovespa index closed 0.64% higher at 172,788 on Friday, buoyed by a dovish shift in global rate expectations following a disappointing US jobs report.
The rally came as investors digested data showing the US labor market added just 57,000 jobs in June, a figure that fell well short of consensus estimates and signaled a cooling economy.
This softness has significantly reduced market pricing for additional interest rate hikes by the Federal Reserve, providing a tailwind for emerging market equities sensitive to the US monetary policy trajectory.
The index initially surged past the 174,000 mark, touching a one-month high, before fading slightly in late trading.
The intraday volatility reflects the cautious sentiment among traders who are balancing the immediate relief from lower rate-hike probabilities against broader macroeconomic uncertainties.
The move mirrors a broader pattern seen across Latin American markets, where Brazilian equities rallied and the local dollar weakened in the immediate aftermath of the US nonfarm payrolls release.