Most Brazilian stocks gained, led by steelmakers, retailers and homebuilders, as metals prices rose and investors speculated job growth will bolster home sales and consumer spending.

Lojas Renner SA, Brazil’s biggest clothing retailer by market value, jumped 4 percent. Usinas Siderurgicas de Minas Gerais SA, the nation’s second-largest steelmaker, rallied as metals prices climbed. The Bovespa’s gain was limited as Petroleo Brasileiro SA, the state-controlled oil company, dropped after yesterday’s announcement of a $224 billion investment plan spurred speculation its share sale may be larger than prior estimates.

“Commodity stocks have been doing better lately after news from China improved,” said Andre Caminada, who helps oversee $500 million as partner at Sao Paulo-based Victoire Brasil Investimentos. “Brazil continues to do well. I think you’ll see it continuing to decouple from the rest of the world because our economic dynamics are different.”

The Bovespa stock index lost less than 0.1 percent to 64,810.62 after earlier rallying as much as 1.6 percent. Forty stocks rose on the index while 24 fell. The measure climbed to a five-week high yesterday after China’s signal that the yuan will strengthen spurred confidence that demand for exports will increase. The real dropped 1 percent to 1.7888 per dollar today, from 1.7712 yesterday.

“Consumer stocks seem to still be moving on the good jobs number from yesterday,” said Felipe Casotti, who helps manage the equivalent of $346 million in assets at Maxima Asset Management in Rio de Janeiro.

Job Creation

Brazil’s economy created more jobs than forecast in May after gross domestic product grew at the fastest pace in 15 years during the first quarter, the Labor Ministry said yesterday.

Brazil recorded 298,041 government-registered jobs last month, higher than the 250,062 new positions economists had predicted, according to the median forecast of eight analysts surveyed by Bloomberg.

Lojas Renner climbed 4 percent to 48.86 reais. B2W Cia. Global do Varejo, Brazil’s biggest Internet retailer, advanced 3.1 percent to 34.04 reais.

Metals prices gained for a second day on speculation a stronger Chinese currency will bolster demand for exports. China’s central bank said on June 19 it will allow greater currency “flexibility.”

Metals Rally

The Bloomberg Base Metals Spot Price Commodity Index rose 1.2 percent to 192.64. The People’s Bank of China said a stronger currency will help curb inflation in the world’s third- largest economy and shift investment toward service industries from export-manufacturing. China is Brazil’s biggest export market.

Usiminas climbed 0.9 percent to 47.50 reais. Cia. Siderurgica Nacional SA, Brazil’s third-largest steelmaker, advanced 0.9 percent to 27.44 reais.

The Bovespa’s gain was limited as the Standard & Poor’s 500 Index fell. Sales of previously owned homes in the U.S., Brazil’s second-biggest trader partner, unexpectedly dropped in May as demand began to slip.

Petrobras slid 1 percent to 29.11 reais. Petrobras said it plans to invest $224 billion through 2014 as it seeks to develop the Americas’ largest oil discovery in three decades and more than double output. Petrobras said it expects to raise $58 billion through debt and equity sales over the five-year period, including a planned share sale this year. This is higher than JPMorgan Chase & Co.’s previous estimate of $50 billion, according to a report.

“We have to admit that Petrobras’s new capex forecasts make us even more concerned with the short-term overhang impact that its planned offering might have on the stock,” Banco BTG Pactual SA analysts wrote in a note to clients today.