Mexico’s benchmark IPC index rallied sharply on Thursday, climbing 1.72% to close at 67,416 points.
The move ended a six-session slide that had weighed on investor sentiment across Latin American equities.
The rebound was triggered by a softer-than-expected US inflation reading, which alleviated concerns that the Federal Reserve might keep interest rates higher for longer.
The peso held steady against the dollar during the session, reflecting the stabilizing effect of the US macro data on emerging-market currencies.
Investors had been rotating out of risk assets following a period of volatility, but the cooling inflation signal provided a clear catalyst for renewed buying interest in Mexican equities.
The IPC’s previous decline was largely driven by weakness in the mining sector, which had dragged the index lower for several days.