SAO PAULO, Nov 12 (Reuters) - Brazil's benchmark stock

index Ibovespa has been setting consecutive record

highs, testing the 158,000-point mark in its longest winning

streak in more than 30 years.

WHY IT'S IMPORTANT

The rally reflects early pricing of an expected easing cycle

of Brazil's benchmark Selic rate, analysts said, also citing the

impact of the Fed's rate cuts, which tends to favor emerging

markets.

Corporate earnings season has reinforced a positive view on

fundamentals, while valuations keep the Ibovespa attractive

compared with peers.

BY THE NUMBERS

The Ibovespa completed on Tuesday 15 straight sessions of

gains, a streak not seen since May-June 1994, having climbed

9.5% during the run and over 30% year-to-date. On Wednesday, the

index was down a slight 0.5%.

ADDITIONAL CONTEXT

Brazil is among the few emerging markets trading at a

price-to-earnings ratio of around 9 times for the next 12

months, while many peers trade between 13 and 20 times,

according to Santander Corretora strategist Ricardo Peretti.

KEY QUOTES

"From a macro perspective, the market is starting to price

in the beginning of the Selic cut cycle more clearly,' said Itau

BBA chief strategist Daniel Gewehr, noting that such cycles have

historically boosted equities over six months.

UBS BB analysts said investors, mostly emerging market

funds, remain relatively optimistic about Brazil.

"The positive sentiment was driven by the sense that

valuations still look cheap even after the rally, policy rates

must come down and there should be a fiscal adjustment

irrespective of the elections outcome in 2026," UBS BB wrote in

a client report.

($1 = 5.4039 reais)