Around the World's Markets: Sao Paulo

BRAZILIAN SHARES closed up 5.4 per cent yesterday, bringing two- day gains to 40.1 per cent on optimism that the country's long-awaited currency devaluation will lead to lower interest rates.

Sao Paulo's key Bovespa index closed at 7,113 points, recovering losses suffered in the first half of the month.

Expectations that crucial tax hikes will be approved in Congress later this week further bolstered stocks.