Mexico stocks reverse losses, close 2 pct higher

(Updates prices)

MEXICO CITY, Feb 11 (Reuters) - Mexican stocks surged on Monday on the back of a rally in top retailer Wal-Mart de Mexico and cell phone operator America Movil despite concerns about the U.S. economy.

The IPC stock index .MXX gained 2.14 percent to 28,789.55 points. The peso MEX01 MXN= was marginally weaker at 10.7620 per dollar.

Wal-Mart de Mexico (WALMEXV.MX) rose 3.55 percent to 38.77 pesos a day ahead of its annual analyst meeting where it will disclose store growth and investment outlooks.

America Movil (AMXL.MX), the most heavily weighted stock in the IPC index, jumped 3.02 percent to 32.36 pesos. Its New York-traded stock (AMX.N) added 3.22 percent to $60.23.

Cemex (CMXCPO.MX), North America's largest cement producer, gained 1.28 percent to 28.47 pesos.

Morgan Stanley raised its rating on Cemex, which generates a fifth of its sales in the United States, on Monday to "equal weight" from "underweight."

Mexican markets have been volatile in recent months because of concerns that the U.S. economy, hit by problems in the credit and housing markets, could stumble into a recession this year.

Concerns about the U.S. credit market were renewed on Monday after American International Group Inc, the world's largest insurer, received a rebuke from its auditors for how it valued some credit derivatives, meaning it could face further losses on U.S. mortgages it insures or invests in.

Mexico sends 80 percent of its exports to the United States, making it highly sensitive to the economy there.

In debt trading, the yield on Mexico's benchmark 10-year government peso bond MX10YT=RR was flat at 7.46 percent. (Reporting by Noel Randewich and Gabriela Lopez; Editing by Jonathan Oatis)