Mexican stocks rose sharply on Friday after a solid US job report soothed concerns about the outlook for economic growth in the United States, Mexico's top trading partner. The benchmark IPC stock index moved up 1.49 percent to 31,540.94 points, led by a big gain in market heavyweight America Movil.
In stock trading, 31 of the 35 companies on the IPC index were higher. Dominant cell phone operator America Movil jumped 2.84 percent to 35.34 pesos, while its New York traded shares were up 3.31 percent at $65.50. "The good US data gave us a boost," said a stock trader in Mexico City.
Cement maker Cemex, a top supplier of the US construction industry, advanced 2.03 percent to 35.56 pesos, while its New York traded shares gained 2.62 percent to $32.90. Top retailer Wal-Mart de Mexico (Walmex) rose 0.67 percent to 43.46 pesos.
Turmoil in global credit markets and a slumping US housing sector has had many investors worried in recent weeks that the United States was sliding toward a recession. But a report showing the US economy generated 110,000 jobs in September quieted some of those concerns.
"If one emerging market is to benefit the most from a recovery in the United States, it would be Mexico given the tight link between the two economies," Francisco Diez, head of emerging markets trading at RBC Capital in Toronto, said in a note to investors.
Mexico sends more than 80 percent of its exports to the United States. The peso currency firmed 0.40 percent to 10.846 per dollar, its strongest central bank close since July 24. The benchmark government 10-year peso bond fell 0.229 of a point to bid 100.521, pushing its yield up 4 basis points to 7.91 percent.
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