Around the World's Markets: Sao Paulo

BRAZILIAN stocks soared, buoyed by rising hopes that legislators will impose new taxes to bring down the country's soaring deficit.

The Bovespa index rose 4 per cent to 7,677.62 as the lower house debated a bill to introduce a tax on state pensioners.

The measure would cut Brazil's $46.8bn deficit by $2bn and help the country to qualify for emergency loans from international lenders. It would also help to restore fragile investor confidence in Brazil's financial and economic health.