Mexico's stocks closed slightly higher on Friday. In stock trading, shares of dominant cell phone operator America Movil led the rally, gained 1.36 percent to 34.36 pesos. Its New York traded shares finished up 2.63 percent at $63.93. America Movil is the heaviest weighted component of Mexico's IPC benchmark stock index.
Shares of Cemex, the world's No 3 maker of cement jumped 2.68 percent to 44.04 pesos, while its New York traded shares finished up 3.45 percent at $40.82. On the losing end, leading retailer Wal-Mart de Mexico (Walmex) lost 2.1 percent to close at 43.26 pesos.
The Mexican peso strengthened sharply on Friday after tame US inflation data eased concerns that the US Federal Reserve could be on course to raise interest rates, while the peso strengthened 1.13 percent in local trading to 10.765 per dollar, its biggest single-day gain since July.
The price of the benchmark government 10-year peso bond rose 0.44 point, pushing its yield down 7 basis points to 7.66 percent. "If there were expectations that US interest rates were going to go up, these appear to be vanishing," said a peso trader in Mexico City.
The benchmark IPC stock index edged up 0.05 percent to 32,128.97 points after earlier touching a record intraday high at 32,564 points. A US report showed annual underlying, or core, inflation at a lower-than-expected 2.2 percent in May, retreating toward the Fed's comfort zone of 1 percent to 2 percent. Softer-than-expected US industrial output also contributed to the view that the Fed might have less reason to raise rates.
Fears of a rate hike in the United States had weighed on the peso in recent sessions, as higher yields on US Treasuries would make more risky assets like Mexican stocks and bonds less attractive to investors.
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