Mexico’s benchmark IPC stock index hit a nine-month high as U.S. economic data buoyed optimism about Latin America’s second-biggest economy.
The gauge climbed 0.8 percent to 37,709.65 at the close in Mexico City, the highest since April 6, 2011. The gauge has recovered 19 percent from a two-year low on Aug. 8.
U.S. manufacturing grew last month at the fastest pace since June in the latest sign of buoyancy in the world’s biggest economy, which purchases about 80 percent of Mexico’s exports. That’s adding to demand for emerging-market assets as concern eases about Europe’s debt crisis, said Ed Kuczma, who helps manage $35 billion at Van Eck Associates in New York.
“Data out of the U.S. has been a little better than expected, so I think Mexico benefits from having a strong neighbor to the north,” Kuczma said by phone. “Globally you’ve seen a reintroduction of risk positions in investors’ portfolios.”
Empresas Ica SAB, the country’s biggest construction company, has led gains among 35 stocks on the IPC this year, advancing 27 percent.
Grupo Televisa SAB, the world’s largest Spanish-language broadcaster, jumped 2.9 percent today after falling for nine straight sessions. The company is awaiting an antitrust ruling on a proposal to acquire a 50 percent stake in mobile-phone provider Grupo Iusacell SA.