The Brazilian real opened stronger against the dollar Tuesday after stronger-than-expected growth figures from China boosted optimism about the world economy.

The Brazilian currency strengthened to BRL1.7722 to the dollar, from BRL1.7809 at the end of active trading Monday, according to Tullett Prebon via Factset.

China reported its gross domestic product expanded by 8.9% during the fourth quarter of 2011 compared with a year earlier, topping consensus targets for 8.7% growth.

"Growth was faster than expected, and that surprised the market," said Ovidio Soares, a trader at the Interbolsa brokerage in Sao Paulo. "China is our biggest trading partner, so this is creating more optimism."

China's full-year growth slowed to 9.2% in 2011, from 10.4% in 2010. Analysts said Tuesday's data suggest that China's economy is headed for a steady slowdown rather than a hard landing.

Key commodities such as oil, copper and gold are soaring higher Tuesday. China buys a wide variety of commodities from Brazil, including iron ore and soy beans.

Financial markets received some good news from Europe Tuesday as well. German economic expectations have improved far more in January than predicted, as improved U.S. economic data, falling Spanish and Italian government bond yields and the European Central Bank's generous supply of liquidity gave rise to optimism, Germany's Center for European Economic Research, also known as ZEW, said Tuesday.

Source: The Wall Street Journal