Mexico peso, stocks gain after global rally

(Recasts, adds detail about dollar sale)

MEXICO CITY, May 29 (Reuters) - Mexico's peso and stocks strengthened on Friday as a global rally in equities boosted investor appetite for emerging market assets.

The peso MXN= MEX01 was 0.61 percent stronger at midmorning, trading at 13.17 per dollar, and gave up some earlier gains after the central bank said it would trim sales of Mexico's dollar reserves.

The IPC stock index .MXX rose 0.55 percent to 24,793 points, led by retailer Elektra (ELEKTRA.MX), which was up 4.59 percent.

"Buoyant equity markets provided the catalyst for emerging markets buying," RBC Capital Markets said in a note to clients.

Mexico will reduce dollar sales meant to boost the peso since the currency has recently stabilized, policy-makers said on Friday.

Before the announcement, the peso had strengthened to as high as 13.04 per dollar.

The central bank will begin selling $50 million daily in auctions beginning on June 9, down from $100 million previously sold daily, according to a joint statement by the bank and the finance ministry.

Banorte bank (GFNORTEO.MX), which on Thursday said it would soon list its shares on the Madrid stock exchange, rallied 3.35 percent to 31.50 pesos. (Reporting by Jason Lange, Editing by Neil Stempleman)