The Ibovespa rose near 1% to trade close to 176,000 on Wednesday amid evidence of slower inflation. The Brazilian inflation rate was at 4.25% in the first half of August from 4.44% in July, firmly below the central bank's upper tolerance band of 4.5%. Bond yields fell as lower inflationary pressures boosted expectations for a Selic rate cut. Financials traded higher, with Itau and Itausa up about 1%, while Bradesco rose more than 1.5% and Banco do Brasil gained nearly 2%. Utilities also advanced, with Sabesp rising over 2.5% after Itau BBA reiterated its buy rating following the stock’s slump after its quarterly results. Vale rose over 0.5% on higher iron ore prices. In contrast, Petrobras lost nearly 0.5% as oil prices fell following reports that Iran and Oman discussed establishing a “temporary joint maritime corridor” in the Strait of Hormuz.