Mexico stocks jump on US productivity, jobless data

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MEXICO CITY, Nov 5 (Reuters) - Mexican stocks jumped on Thursday after a rise in business productivity and a drop in jobless claims boosted confidence in the U.S. economic recovery.

The IPC stock index .MXX closed up 1.04 percent at 29,735.34 points. The peso MXN=MEX01 edged up 0.03 percent to 13.288 per U.S. dollar, held in check by worries that tax reforms passed last weekend will not be enough to stave off a downgrade of the country's debt.

U.S. business productivity in the third quarter grew at its fastest pace in six years while initial claims for state unemployment benefits fell to a 10-month low last week, indicating the labor market in Mexico's top trading partner may be hitting bottom.

"We had a very favorable balance of indicators today and the jobless claims suggest we could get a good non-farm payrolls number" on Friday, said Carlos Ponce, head of equity strategy at Ixe brokerage firm in Mexico City.

"While we could see some short-term gains, we are headed for more volatility. There are a lot of doubts how they will start to reduce all the stimulus out there," Ponce added.

Shares in America Movil (AMXL.MX: Quote, Profile, Research) rose 2.23 percent to 31.12 pesos while copper miner Grupo Mexico (GMEXICOB.MX: Quote, Profile, Research) added 1.1 percent to 27.45 pesos.

Cable television operator Megacable (MEGACPO.MX: Quote, Profile, Research) jumped 6.72 percent to 29.08 pesos after Citigroup-unit Banamex raised its rating to a "buy," citing an attractive price given its potential for growth.

Megacable has lined up a partner to launch mobile phone services by the first quarter of 2010, its chief executive said on Thursday, as it taps a market led by tycoon Carlos Slim's America Movil. For full story, see [ID:nN05255857]