Brazil had already forged into what would be a telling 1-0 lead via Gladstone's 14th-minute header when Reto picked up the ball on the left and smashed a dipping 25-yard shot onto the crossbar.
After an open first half with chances at both ends, the second half disappointed with Brazil happy to hold onto their lead. Reto was substituted on the hour.
With Korea beating Nigeria 2-1, it means Reto's Swiss side have to beat the Africans on Saturday to guarantee a place in the last 16 of the tournament, although a draw might be enough.
Reto Ziegler hit the woodwork as Switzerland suffered a 1-0 defeat against reigning champions Brazil in the World Youth Championship in Holland on Wednesday.