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Brazil stocks are cheap after China woes: Fin Min

Credit scarcity holding back consumption in Brazil: Fin Min

It's the perfect time for investors to lead the charge back into emerging market Brazil, according to the country's finance minister, who told CNBC that China growth fears have dragged stock prices down to very attractive levels.

Guido Mantega, Brazil's finance minister, said the county's stock market has become strongly dependent on China, with its heavy link to commodities. On Thursday, fresh data showed China's manufacturing activity contracted for the first time in six months in January. Commodities producers drove the country's Bovespa stock index down following the news.

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"Over the last few weeks we've heard not very good news on growth rate for China. China has been giving ambivalent signals. So when they give signals like the one they gave yesterday with PMI that dropped a little, our stock market loses some value as a result," he told CNBC at the World Economic Forum in Davos.

"Over the last few months we haven't had a good performance but today the Brazilian stock market is a cheap market, a buyers' market and it is good for business because Brazilian companies are becoming increasingly more profitable."

He said that recent fluctuations may have been unwanted but was hopeful that as the global economy recovers, the BRIC nations - Brazil, Russia, India and China - would see foreign investment returning

"We only decelerated in the recent past because we didn't have markets to export our products to," he said.

"But with the American recovery which seems to be consolidating, with some level of economic recovery for Europe as well as for Japan and the U.K., you may possibly see recovery."

—By's Matt Clinch. Follow him on Twitter