Mexican peso firms on US rate view; stocks edge up

MEXICO CITY, Feb 8 (Reuters) - Mexico's peso firmed to a three month high on Friday on bets of further U.S. interest rate cuts, while stocks rose tentatively.

The peso MXN= MEX01 advanced 0.19 percent to 10.7595 per dollar, while the benchmark IPC stock index .MXX advanced 0.22 percent to 28,150 points.

Investors are betting the U.S. Federal Reserve will cut its benchmark rate in March, which would make Mexican assets more attractive to yield-hungry investors.

Dominant cell phone operator America Movil (AMXL.MX) rose 0.19 percent to 31.35 pesos. Its New York traded shares (AMX.N) were up 0.19 percent at $58.38.

On the losing end, Telmex (TELMEXL.MX) stock slumped 4.48 percent to 18.78 pesos in early trade after the company reported an 11 percent drop in fourth quarter net profit for its local operations.

The company's New York traded stock fell (TMX.N) 4.4 percent to $34.80.

In debt trading, Mexico's benchmark 10-year government peso bond MX10YT=RR gained 0.209 in price to bid 102.088. Its yield, which moves inversely to its price, fell 3 basis points to 7.45 percent. (Reporting by Jason Lange and Vanessa Padilla, Editing by Chizu Nomiyama)