(Adds likely to become hurricane)

MEXICO CITY, Oct 18 (Reuters) - Tropical storm Kiko spun along Mexico's Pacific coast on Thursday and was forecast to become a hurricane near the port and resort town of Manzanillo.

Kiko carried maximum sustained winds near 40 mph (65 kph) with stronger gusts, the U.S. National Hurricane Center said.

The storm was expected to brush along the coast on Friday and later become a hurricane close to Manzanillo, one of Mexico's biggest ports and a resort popular with U.S. sports fishers.

Kiko is not predicted to make a direct landfall, increasing its chances of picking up strength over open sea.

The forecasters warned Kiko would likely become a category one hurricane over the next 36 hours to 48 hours and could turn into a category two storm strong enough to tear down trees within 96 hours.

The Miami-based center said Kiko could bring heavy rains, with isolated maximum rainfall of up to 10 inches (25 cm) in the mountain ranges that line Mexico's Pacific coast.

"Life-threatening flash floods and mudslides are possible over mountainous terrain," the center said.

Manzanillo does not export oil, most of which leaves ports on the Gulf coast.

Kiko was forecast to head toward the tip of the Baja California peninsula, home to the Los Cabos beach resort, early next week.

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