Mexico peso, stocks gain on bets recession easing

(Recasts; adds details on data; updates stock quotes)

MEXICO CITY, May 29 (Reuters) - Mexico's peso strengthened and stocks gained on Friday after data in the United States and Japan fueled hopes the worst of the global economic downturn is over.

The peso MXN= MEX01 traded 0.57 percent stronger at 13.176 per dollar, giving up some earlier gains after the central bank said it would trim sales of Mexico's dollar reserves.

The IPC stock index .MXX rose 0.50 percent to 24,781 points, led by retailer Elektra (ELEKTRA.MX: Quote, Profile, Research), which jumped 4.59 percent.

Revised first-quarter U.S. GDP figures showed less of a contraction than initial estimates, while another report showed Japanese factory output jumped in April at its fastest rate in more than a half century.

The data boosted "further speculation that the worst of the global recession may be over," RBC Capital Markets said in a note to clients.

Mexico sends about 80 percent of its exports to the United States.

But holding the peso currency back from further gains, Mexico said on Friday it will reduce dollar sales meant to boost the peso since the currency has recently stabilized.

Before the announcement, the peso had strengthened to as high as 13.04 per dollar.