International Business : Global Markets and Economic Update : MEXICAN STOCKS

* Share prices continued to rally Wednesday as short-term Mexican interest rates dropped from last week’s 17-month highs. The Bolsa stock index rose 48.65 points to 2,332.78, though it fell back in late trading from a midday high of 2,364.

* At the government’s weekly treasury bill auction Wednesday, 28-day bills yielded 16.25%, down 1.75 points from last week, when the Mexican central bank moved to boost rates to defend the weak peso. The defense worked, which in turn sparked a buying surge in stocks last week. Traders were further cheered by Finance Minister Pedro Aspe’s comments Tuesday that interest rates had peaked.

Source: D.A. Campbell, Los Angeles Times

SPOTLIGHT: PERU

The country’s long-ailing economy is on the mend due to productivity gains, increased foreign investment, reduced inflation--from 7,000% in 1990--and the winding down of the long guerrilla war. One trouble spot is the mining industry, where production is down because of low world prices.

Sources: Bank of America, World Information Services