Mexico's peso, stocks gain as US data spurs hopes

MEXICO CITY Nov 25 (Reuters) - Mexico's peso firmed on Wednesday and stocks rose after better-than-expected jobs and home sales data boded well for a recovery in the United States, Mexico's top trading partner.

The peso MXN= MEX01 firmed 0.13 percent to 12.8575 per U.S. dollar, trading just above a key resistance level that has held the peso back this year, while the IPC stock index .MXX gained 0.80 percent to 31,208 points.

The number of workers filing claims for jobless benefits fell by a surprisingly large amount in the last week, while sales of newly built U.S. single-family homes in October rose more than expected to their highest level in a year.

"New homes sales were up, so it appears the U.S. economy is picking up," said a currency trader in Mexico City.

Mexico sends around 80 percent of its exports to the United States and is counting on a strong recovery there to recover from the deepest local recession since the 1930s.

The Mexican currency has gained more than 4 percent since Nov. 6, boosted by signs U.S. interest rates could remain near zero well into 2010.

Downgrades of the country's debt by Wall Street ratings agencies have also been priced in by the market.

Fitch Ratings cut Mexico's sovereign debt rating by one notch on Monday, but the currency rallied as Fitch revised the country's credit outlook to stable, quelling the threat of a further downgrade from the agency.

In local stock trading, shares in America Movil (AMXL.MX) rose 1.1 percent to 31.13 pesos while copper miner Grupo Mexico (GMEXICOB.MX) added 1.29 percent to 30.58 pesos.

The yield on the government's benchmark 10-year peso bond MX10YT=RR was flat at 7.80 percent after falling to a six-week low on Tuesday. ((Reporting by Michael O'Boyle, Editing by Gary Crosse)) ((michael.oboyle@thomsonreuters.com; +5255-5282-7153; Reuters Messaging: michael.oboyle.reuters.com@reuters.net))