A magneto-resistance element according to the present invention has a pinned layer whose magnetization direction is fixed; a free layer whose magnetization direction varies in accordance with an external magnetic field; and a nonmagnetic spacer layer that is arranged between the pinned layer and the free layer, at least the pinned layer or the free layer includes a layer having Heusler alloy represented by composition formula X.sub.2YZ (where X is a precious metal element, Y is a transition metal of Mn, V, or Ti group, Z is an element from group III to group V), and a part of composition X is replaced with Co, and an atomic composition ratio of Co in composition X is from 0.5 to 0.85.