Brazil Markets Tumble as Petrobras Dividend Sends Shockwaves (2)

Brazilian markets slumped after a smaller-than-expected dividend payout from state oil giant Petroleo Brasileiro SA rekindled fears of increased government intervention in the nation’s largest companies.

The Brazilian real weakened as much as 1.1% on Friday, leading losses among major currencies around the world, while long-end swap rates climbed. The benchmark Ibovespa equity index fell to the lowest in more than three weeks, dragged down by Petrobras, which accounts for 13% of the index weightings. Shares in the firm fell more than 10%, erasing about 56 billion reais ($11 billion) in market value.

The oil producer’s lower payout adds to ...