Mexico peso hit by recovery jitters; Cemex sinks

(Recasts, adds trader quote and background)

MEXICO CITY, July 29 (Reuters) - Mexico's peso weakened on Wednesday as weak durable goods orders in the United States, Mexico's top trading partner, and a stock sell-off in China spurred bids for less risky assets like the U.S. dollar.

The peso MXN=MEX01 briefly broke past a key resistance level of 13.30 per U.S. dollar that has held in recent sessions, but bounced back to trade at 13.2805, 0.46 percent weaker from Tuesday.

"There are heavy buy orders at 13.30, the level will hold," said Alfredo Puig, a trader at Vector brokerage in Monterrey.

The IPC stock index .MXX lost 0.9 percent to 26,609 as weak revenues from cement giant Cemex revived worries about the future of one of Mexico's most widely traded stocks.

A stock sell off in China curbed appetite for risk around the world. Chinese stocks sank 5 percent on concerns authorities might take measures to cool the 80-percent gain in the Shanghai Composite Index .SSEC.

New orders for long-lasting U.S. manufactured goods notched their biggest decline in five months in June, a report showed on Wednesday, boding poorly for a recovery in Mexico's battered exports, more than 80 percent of which are sent to the United States.

The U.S. downturn has driven Mexico into a deep recession, and the central bank on Wednesday revised downward its growth outlook, saying the economy could shrink as much as 7.5 percent this year, which would mark the worst local recession since the Great Depression.

In stock trading shares of cement giant Cemex (CMXCPO.MX) sank 5.38 percent to 11.97 pesos after the company reported disappointing sales volumes amid the global downturn in construction. [nN29260320]

Cemex said on Wednesday that most of its creditors were backing its $15 billion debt refinancing deal. [nN29265962]

Shares in conglomerate Alfa (ALFAA.MX), which makes chemicals, cold meats and auto parts, lost 4.35 percent to 49.02 pesos after Santander cut its rating on the stock to "hold."

America Movil (AMXL.MX), Latin America's top wireless operator, fell 2.07 percent to 27.88 pesos. (Reporting by Michael O'Boyle)