Mexico stocks gain, led by miners; peso weakens

MEXICO CITY, May 5 (Reuters) - Mexican stocks rose on Monday, boosted by gains in shares of telecommunications bellwether America Movil and mining companies.

The benchmark IPC stock index .MXX gained 0.68 percent to 30,758 points while the peso <MXN=> MEX01 weakened 0.08 percent to 10.4715.

In debt trading, the government's benchmark 10-year peso bond <MX10YT=RR> fell 0.2 of a point in price to bid 98.847, pushing its yield up 3 basis points to 7.92 percent.

Traders said volume across markets was thin due to a public holiday in Mexico.

A report showing the U.S. services sector posting surprising growth in April, snapping three straight months of declines, calmed fears about the depth of the current slowdown in Mexico's chief trading partner.

"The U.S. data is definitely helping, but the volume is very calm. It seems that we are following Brazil," one trader said.

Brazil received a much-coveted ratings upgrade last week from credit ratings agency Standard & Poor's. The boost to investment grade is helping boost markets there as well as other countries in Latin America.

Mexican peso traders said the currency was expected to stay within a narrow range due to the lack of major economic data this week that could change the outlook on the domestic or U.S. economy. Mexico sends around 80 percent of it exports to its northern neighbor.

Mexico's peso has been supported by a relatively wide spread between Mexican and U.S. interest rates as well as high oil prices, which neared a record price of $120 per barrel on Monday. Mexico is the world's sixth biggest crude exporter.