Mexico markets rally on energy reform optimism

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MEXICO CITY, March 25 (Reuters) - Mexican stocks jumped 1 percent on Tuesday and the peso firmed on investor optimism that President Felipe Calderon will push a bill through Congress to overhaul the country's struggling energy sector.

A senior ruling party lawmaker said on Monday that the government could submit an energy reform proposal in 10 to 15 days.

Calderon's conservative party, which lacks a majority in Congress, is courting the opposition to put together a compromise deal that could increase private investment in the sector.

Some lawmakers say the proposal could boost investment in the refining sector as a way to lower fuel costs in Mexico, which imports about 40 percent of its gasoline from the United States.

"This is good for Mexico and would help lower costs for companies," said Juan Jose Resendiz, an analyst at Arka brokerage in Mexico City.

"It's starting to look like they might approve it," he said of the planned energy bill.

The stock market's benchmark IPC stock index .MXX rose 1.09 percent to 29,958 points, while the peso currency <MXN=> MEX01 firmed 0.17 percent to 10.6785 per dollar.

Mexico's energy minister had said a bill would be submitted by the end of March, but a leadership spat in Mexico's left-wing opposition party is seen delaying the government's attempt to make politically difficult changes to oil sector laws.