Metal companies on Monday have pushed the Ibovespa stock index to one of its biggest intraday gains of the year.

The Ibovespa stock index, which measures Brazil's biggest companies traded on the Bovespa stock exchange, was up 3.01% to 54,797 at 1746 GMT, with metals companies outperforming by a percentage point.

Shares of Vale S.A. (VALE) were 4.25% higher to 33.88 Brazilian reals ($17.37) per share. Gerdau (GGB) was 4.56% higher to BRL21.55 and Companhia Siderurgica Nacional (SID) was 4.78% higher to BRL50.80.

Base metals traded to a multi-month high Monday as investors piled into commodities following bullish Chinese manufacturing data.

Positive China news bodes well for Brazil, which is a major metals trader for the Chinese market.

Demand for industrial metals remains weak, however, with Vale saying last month that it would reduce its budget by 35% because of softer demand.

Analysts said Monday's skyrocketing rally in emerging markets could be short-lived and was solely spurred on by China and a weaker dollar.

Brazil is slightly underperforming China equities in world markets early afternoon.

The iShares MSCI Brasil (EWZ) exchange traded fund is up 5.25% to $58.08 per share in New York, while the iShares FTSE/Xinhua 100 China (FXI) ETF is up 6.13% to $39.66. Both are outperforming its benchmark MSCI Emerging Markets index by around two percentage points.

The newly launched Market Vectors Brasil Small-Cap ETF (BRF) is up 3.8% to $28.93 per share in early afternoon trade.

-By Kenneth Rapoza, Dow Jones Newswires; 5511-2847-4541; kenneth.rapoza@dowjones.com