Mexican stocks hit their highest in 2 years on Friday after data showed weaker-than-expected US job losses in November, boosting Mexico's economic prospects. The peso was flat near a 13-month high. Mexico, which sends around 80 percent of its exports to the United States, is counting on a US rebound to fuel its own recovery from the deepest local recession since the 1930s.
The benchmark IPC stock index rose 0.43 percent to 32,105.39. Data showed US employers cut only 11,000 jobs last month, the best showing in nearly two years, and the jobless rate climbed down to 10 percent, a strong suggestion the jobs market was edging towards health. "With the big relationship between Mexico and the United States, this is definitely a positive for Mexico," said Gerardo Margolis, vice president of emerging markets at TD Securities in Toronto.
Wal-Mart de Mexico gained 0.57 percent to 56.43 pesos. Walmex, Mexico's top retailer, will post its November same-store sales later on Friday, and a Reuters survey of analysts expects a 2.3 percent rise. Cement maker Cemex, a top US supplier, rose 2.09 percent to 14.67 pesos. The peso has gained more than 4 percent since the beginning of last week following a widely expected debt downgrade by Fitch Ratings and growing bets that a US recovery will fuel a Mexican rebound.
"It looks like the economy is already touching bottom and that will definitely help markets to continue the upward trend," said Gerardo Copca, a strategist at MetAnalisis consultancy in Mexico City. The peso pared its initial gains after the jobless data pulling back after hitting 12.5050, its strongest since early November 2008, as the dollar gained broadly since the jobs report suggested US interest rates may rise sooner than expected.
Comments
Comments are closed.