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(Updates with final prices, Temer comment) SAO PAULO, May 29 (Reuters) - Brazilian equities rose almost 1 percent on Tuesday as traders searched for bargains after four straight sessions in the red, but shares pared some of their earlier gains as the day wore on.
Brazil's benchmark Bovespa equities index had fallen some 8 percent in the previous eight days and 4.5 percent on Monday alone as an drawn-out truckers' strike hit the economy, despite signs it was winding down.
Among the hardest-hit stocks was state-run oil major Petroleo Brasileiro SA, known as Petrobras, which slumped nearly 15 percent on Monday as the government softened the company's pricing policy in a bid to win over truckers protesting high fuel prices.
On Tuesday, traders saw opportunities across the board, with multiple banks arguing that some stocks have attained attractive valuations during the selloff, which as of Monday's close wiped out the Bovespa's gains for the year.
Analysts at Banco Santander Brasil SA flagged discount retailer Lojas Americanas SA, energy company Equatorial Energia SA, bank Itau Unibanco Holding SA and tire manufacturer Iochpe Maxion SA as potential buys in a research note.
Analysts at UBS AG said in a note some stocks in the transport sector had seen "an exaggerated sell-off," pointing to rental car company Localiza Rent A Car SA, airline Azul SA, auto part maker Tupy SA as well as Iochpe.
The big index mover on the day was Petrobras, whose common stock closed up by 12.4 percent.
The Bovespa rose by almost 2.5 percent in morning trade, but later pared some gains and closed up 0.95 percent.
The real currency dipped 0.29 percent on Tuesday, outperforming several other regional currencies as the dollar strengthened. Traders described the political atmosphere as somewhat calmer than in previous sessions, with those who had been scooping up dollars shifting back into reais.
Still, President Michel Temer told reporters in Sao Paulo there was no chance the truckers' protest would spark a military coup and topple his government.
Among regional currency markets, Mexico's peso was the biggest loser, falling 1.40 percent against the dollar, as the renegotiation of the North American Free Trade Agreement proceeds in fits and starts.
Key Latin American stock indexes and currencies at 0000 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 1123.46 -1.19 -1.85 MSCI LatAm 2551.46 -0.52 -9.31 Brazil Bovespa 76071.97 0.95 -0.43 Mexico IPC 44647.37 -0.45 -9.54 Chile IPSA 5494.51 -1.36 -1.26 Chile IGPA 27830.22 -1.26 -0.54 Argentina MerVal 28389.22 -0.92 -5.58 Colombia IGBC 12205.72 1.51 7.34 Venezuela IBC 34695.33 6.73 2646.75 Currencies daily % YTD % change change Latest Brazil real 3.7392 -0.28 -11.39 Mexico peso 19.8280 -1.40 -0.65 Chile peso 629.80 -0.84 -2.41 Colombia peso 2906.15 -0.93 2.61 Peru sol 3.276 -0.03 -1.19 Argentina peso 24.84 -0.44 -25.12 (interbank) Argentina peso 25.80 0.00 -25.47 (parallel) (Reporting by Gram Slattery; Additional reporting by Paula Arend Laier; Editing by Meredith Mazzilli and Lisa Shumaker)