A magneto-resistive element has: a first stacked film assembly having a pinned layer, a spacer layer, and a free layer; a first electrode layer which is arranged such that the first layer is in contact with the first electrode layer on the other side of the first layer, the first electrode layer being made of a ferromagnetic material; and a second electrode layer which is arranged on a side that is opposite to the first electrode layer with regard to the first stacked film assembly. The first and second electrode layers are adapted to apply a sense current to the first stacked film assembly and the first layer in a direction that is perpendicular to layer surfaces. The first layer is made of gold, silver, copper, ruthenium, rhodium, iridium, chromium or platinum, or an alloy thereof.