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Sao Paulo - Brazilian stocks rose strongly Ton uesday, overturning losses from the previous day as traders digested the re-election of left-wing President Dilma Rousseff.
At the close, Sao Paulo's Ibovespa benchmark index had risen 3.62% in high-volume trading to finish the day at 52 330 points, up from 50 503 points 24 hours earlier.
Monday had seen stocks plunge 6% at the opening bell ahead of a partial recovery that left the index shedding 2.77% over the session.
On the currency market, the Brazilian real - which had slid Monday to a nine-year low of 2.523 to the dollar - ended Tuesday 1.98% higher at 2.474 to the greenback.
The Brazilian unit, which shed 12.96% last year against the dollar, is down 4.73% over the year as a whole against its US counterpart, however.
Analysts indicated investors were keen to see who Rousseff would select as finance minister for her second term to replace Guido Mantega, in the post since 2006.
Rousseff, 66, narrowly saw off Social Democrat challenger Aecio Neves, the market favourite, in a run-off election Sunday.
She said Monday she hoped that "calm" would return to the markets, adding she will announce by year's end measures designed to pull the economy out of recession.
The first woman to lead Brazil also promised to hold a "dialogue" with all sectors of the economy once her second term officially begins on January 1.
"I intend to unveil very clearly what measures I am going to take," she said, downplaying Monday's market turbulence.
"Markets fell in the US, markets fell in Europe. The whole world is facing a lot of difficulties," she said.
Brazil, the world's seventh-largest economy, has endured four years of anaemic growth under Rousseff, after seeing several years of strong growth before she took office - GDP soared 7.5% in 2010.
The economy entered recession in the first half of 2014, and growth this year is expected to come in barely above zero.
