Brazil equities eke out gain as currency weakens

(Updates to close)

SAO PAULO, Oct 26 (Reuters) - Brazilian stocks eked out gains on Monday after following a global sell-off for much of the afternoon.

Brazil's benchmark Bovespa index .BVSP edged up 0.04 percent to close at 65,085.55 on Monday.

The index had spent much of the afternoon following U.S. markets down, as investors dumped stock in financial companies and home builders in the world's largest economy.

But investors in Brazil saw the lower share prices as an entry into an economy that's bounced back harder and faster from the global financial crisis than many developing nations, pushing prices back up shortly before the close of day.

"People are seeing slumps as a chance to get into Brazilian stocks," said Adriano Moreno, a strategist with Futura Investimentos.

Investors who did not buy into the Brazilian equities market earlier this year are now playing catch-up, making downturns in Brazilians stocks these days brief, he added.

Brazil's currency, the real (BRBY: Quote, Profile, Research), weakened 1.23 percent to 1.735 per dollar as the greenback advanced against a basket of major currencies .DXY on a dent in risk appetite. [ID:nN26183756]

As the week wears on, data from the United States will likely give investors their cues, said said Andre Luis Querne, a partner at Rio Gestao de Recursos.