Brazil stocks rise on metals prices; currency flat

SAO PAULO, April 13 (Reuters) - Brazilian stocks gained for a third straight session on Monday led by mining company Vale and steelmakers Gerdau and Usiminas as signs of a recovery in China demand lifted metals prices, while the national currency traded steady following a recent rally.

The Bovespa index .BVSP of the Sao Paulo stock exchange rose 0.45 percent to 45,744 points, adding to recent gains that pushed the index 4.4 percent higher over three sessions. Brazil's markets were closed on Friday for a national holiday.

Vale (VALE5.SA: Quote, Profile, Research) led the market higher, rising 1.9 percent to 30.25 reais, as U.S. copper prices rallied to a six-month high after data showed Chinese copper imports set a record in March. Vale's Chief Financial Officer Fabio Barbosa said on Monday there are signs of an increase in Chinese metals and iron ore demand.

"There are signs of a reversal, an improvement," Barbosa said at a seminar in Rio de Janeiro. "In the case of China, it's more pronounced."

Optimism over China demand also helped lift Brazilian steelmakers' shares, with Gerdau (GGBR4.SA: Quote, Profile, Research) rising 1.7 percent to 14.95 reais and CSN (CSNA3.SA: Quote, Profile, Research) climbing 1.3 percent to 38.4 reais.

Government-controlled Banco do Brasil (BBAS3.SA: Quote, Profile, Research) firmed 0.7 percent to 16.97 reais, after sinking 11.7 percent over four sessions, amid news its chief executive stepped down.

Aldemir Bendine, the bank's incoming CEO, said in a conference call on Monday that Banco do Brasil's credit portfolio should grow 17 percent in 2009, unchanged from a previous forecast.

Brazil's currency, the real (BRBY: Quote, Profile, Research), traded at 2.172 per U.S. dollar, unchanged from Thursday when the currency ended at a five-month high.

Interest rate futures contracts <0#DIJ:> at the BM&F commodity and futures exchange were mostly higher, after tumbling in recent sessions on expectations of further interest rate cuts by the central bank as inflation eases.