By Carla Mozee

Mexican and Brazilian stocks gained ground Wednesday, as improving U.S. economic data and a wider trade surplus in Brazil allowed the benchmarks to start the second half of 2009 building on their best quarterly performances in years.

Mexico's IPC index rose 0.6% to 24,524. The index in the previous session closed the second quarter with a rise of 24%, its best quarter since the fourth quarter of 1999.

Brazil's Bovespa index rose 0.2% to 51.543, but ended off session highs. The index tracking the largest equity market in Latin America gained 25.8% for the second quarter, its highest finish since the third quarter of 2005.

Investors tracked a positive stream of data from the U.S., whose economic recovery is important particularly for Mexico, which ships more than 80% of its export products to the U.S.

The Institute of Supply Management said the U.S. manufacturing sector contracted at a slower pace in June, indicating that growth for the sector should soon arrive. The index rose to 44.8%, higher than the 42.8% reading in May. The June result was the highest since last August.

The National Association of Realtors said pending sales of existing homes ticked up 0.1% in May, rising for the fourth straight month. The index is 6.7% above May 2008.

On Wall Street, the S&P 500 Index (SPX) rose 0.4% to 923.33 and the Dow Jones Industrial Average (DJI) rose 0.7% to 8,504.

In trading action, shares of Mexican cement maker Cemex (CX) rose 2.1% on their home market. The company is presenting a plan to lenders to have $14.5 billion of its debt rescheduled through 2014. Cemex officials were slated to continue talks with banks on Wednesday in Madrid.

Credit Suisse in a note to clients Wednesday said a status update from the company acknowledges "for the first time" that it could be forced to issue equity to reach a final agreement with its lenders, "given their prolonged inability to meet debt amortization schedules and the increasing pressure deriving from the upcoming expiration of the stand-still agreement."

The agreement expires on July 31.

Cemex said Tuesday that it continues to make "significant" progress with the key banks that hold the bulk of its debt.

Elsewhere, shares of wireless service provider America Movil (AMX) rose 1.7%. The most heavily weighted stock on the index finished the second quarter with a rise of 32%, the highest percentage gain since the second quarter of 2007.

In Sao Paulo, iron ore supplier Vale (RIO) gained 0.9%, paring a stronger advance.

In China, a key market for Vale, the China Federation of Logistics & Purchasing said its purchasing managers' index rose for a fourth consecutive month. The index is a gauge of regional manufacturing activity.

Steel makers advanced. Usiminas climbed 2.2% and Gerdau (GGB) picked up 0.4%.

Brazil's currency surged against the U.S. dollar after the Brazilian trade ministry said the trade surplus widened to $4.6 billion in June as exports increased on greater demand for natural resources. Analysts polled by Dow Jones Newswires had expected the trade surplus to reach $4.14 billion. June's surplus jumped from May's reading of $2.6 billion.

The currency traded at 1.933 reals per greenback, compared with Tuesday's level of 1.962 reals.

Shares of oil giant Petroleo Brasileiro (PBR) deepened losses as the session wore on, finishing down 2%. Oil futures dropped 2.2% after U.S. government data showed crude inventories rose for the first week in five.

Argentina's Merval climbed 1.6% to 1,615.28, with shares of steel tube maker Tenaris (TS) up 1.9%.

Shares of Aluar reversed course and fell 2.7%. The aluminum maker's stock was reportedly added to the Merval index as part of a third-quarter shuffle of the benchmark's lineup. Shares of Banco Patagonia were removed. They closed 6.7% higher.

Chile's IPSA rose 0.5% to 3,105.87.