UPDATE 1-Mexican stocks hit life high on U.S. fiscal cliff deal

Wed Jan 2, 2013 10:26am EST

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By Gabriel Stargardter

MEXICO CITY Jan 2 (Reuters) - Mexico's IPC stock index rose more than 1 percent on Wednesday to reach all-time highs as investors welcomed the news of a last-minute "fiscal cliff" deal in the U.S Congress on Tuesday night.

The index was up 1.24 percent at 44,249.59 points in early morning trading, tracking similar gains in the S&P 500, up 2.02 percent, the Dow Jones, up 1.94 percent, and the Nasdaq, up 2.5 percent.

Brazil's Bovespa index rose nearly 3 percent.

"Locally there is nothing," said Gerardo Roman, head of stock trading at Actinver brokerage in Mexico City. "All of this is on the United States and the belief that we avoided catastrophe."

The U.S. "fiscal cliff" deal, which was passed after much partisan wrangling in Washington, prevents huge spending cuts and tax hikes that could have pushed the world's largest economy back into recession.

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