Brazil stocks close higher on optimism, real gains

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SAO PAULO, Nov 4 (Reuters) - Brazilian stocks closed higher on Wednesday as upbeat European and U.S. economic news whetted appetite for riskier emerging market assets.

The benchmark Bovespa stock index .BVSP climbed 2.03 percent to 63,912.57, adding to gains of the previous session.

Brazil's currency, the real (BRBY: Quote, Profile, Research), strengthened 0.75 percent to 1.733 per dollar as the greenback weakened against a basket of major currencies .DXY.

Expansion in the euro zone's service sector helped propel gains in the morning. Brazilian stocks were also fueled by Wall Street where shares touched session highs after the Federal Reserve said it would keep borrowing costs near zero for "an extended period of time."

The Fed kept its benchmark federal funds rate unchanged in a range of zero to 0.25 percent and said the economy has "continued to pick up" since the last policy meeting in September. For full story, see [ID:nN04453484]

"It didn't bring any surprises," said Newton Rosa, an economist with SulAmerica Investimentos, adding that the statement was not a game changer.

Investors remain drawn to riskier emerging market assets as the global economy appears to be recovering, he added.

Brazil's Bovespa index has climbed about 70 percent so far this year while the national currency has strengthened almost 35 percent against the dollar.