Around the World's Markets: Sao Paulo

BRAZILIAN SHARES were trading 2.5 per cent higher yesterday afternoon after the rebel state which triggered the currency crisis in January surprised markets by failing to extend officially its debt moratorium.

The governor of Minas Gerais, the state which sparked turmoil after it defaulted on its federal debt, did not rule out an extension of the moratorium at a later date although he did say that it planned to begin repaying smaller suppliers.