(Recasts, adds analyst quote and background)
MEXICO CITY, July 15 (Reuters) - Mexico's peso surged on
Wednesday and stocks jumped as better-than-expected U.S. output
and factory data and some solid quarterly earnings reports
boosted confidence in economic recovery in the United States.
The peso <MXN=><MEX01> gained 1.31 percent to 13.557 per
dollar, snapping a six-session losing streak, while the IPC
stock index <.MXX> rose 3.23 percent to 25,126.
U.S. industrial output declined at a slower pace in June
and a key regional U.S. factory survey posted its strongest
reading in a year this month, suggesting the recession was
loosening its grip.
"It may not be the quality of a rebound we need yet, but it
is getting there," said Carlos Gonzalez, an analyst at Ixe
brokerage in Mexico City.
The U.S. downturn has driven Mexico into a deep recession
and hopes for a local recovery depend on a rebound in demand in
the United States, the destination for around 80 percent of
Mexican exports.
Further underpinning investor optimism, Intel Corp <INTC.O>
posted solid quarterly results and beat expectations for its
revenue outlook.
"We are seeing that companies are not as bad off as we
thought and we can expect the second half of the year to be
better," Gonzalez said.
Mexican media giant Televisa, which posts earnings on
Thursday, and America Movil, the top wireless operator in Latin
America, are expected to post heartening results this week and
next.
Shares in Wal-Mart de Mexico <WALMEXV.MX> climbed 2.43
percent to 40.00 pesos and America Movil <AMXL.MX> added 1.77
percent to 27.02 pesos.
Televisa <TLVACPO.MX> gained 3.1 percent to 48.94 pesos.
(Reporting by Michael O'Boyle; Editing by Dan Grebler)
Keywords: MARKETS MEXICO
