Around the World's Markets: Sao Paulo

STOCKS PARED losses after Brazil and the IMF said they were nearing an agreement on fiscal targets, paving the way for an aid package to stem the outflow of capital that has slashed foreign reserves and shore up the Brazilian currency.

The benchmark Bovespa, which dived as much as 4.2 per cent earlier in the day, cut its losses to under 3 per cent, to stand at 5982.8, off 173.8 points in afternoon trading. The blue-chip index has fallen more than 50 per cent in value over the past 12 months.