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Published: Sun, November 13, 2016
Economy | By Melissa Porter

Asia markets extend global rally on Trump hopes


President Enrique Pena Nieto sent a series of messages from his Twitter account in the morning congratulating American voters and said he was ready to work with Trump to advance the countries' relationship.

Ruiz Massieu said NAFTA would be discussed with Trump's transition team in the coming months.

Trump defeated his Democratic rival, Hillary Clinton on Tuesday.

Trump is expected to take oath of office on January 20 as the 45th president of the United States.

Analysts said the peso had been able to recover from its record low after Trump took a measured tone in his victory speech and did not invoke any of his threats against Mexico.

Mr Trump met with Mr Pena Nieto in late August during a surprise visit to Mexico City.

Mexico's Supreme Court said past year that laws restricting marriage to a man and woman were unconstitutional and a Supreme Court judge urged states to legalize gay marriage.

"If the U.S.is doing well, Mexico will be fine and vice versa". Speculation in markets that Trump would enact protectionist trade policies and put upward pressure on USA wages and boost inflation helped lift US bond yields.

Trump has said he would rescind the North American Free Trade Agreement (NAFTA), which has increased commerce between Mexico, the United States and Canada, saying that it has killed USA jobs.

Canada and Mexico agreed Thursday to US President-elect Donald Trump's demand to have a fresh look at their tripartite 22-year-old free trade pact, fearing they could be shut out of the US market.

However, Foreign Minister Claudia Ruiz Massieu reiterated Mexico would not pay for Mr Trump's proposed wall along the USA border.

But Trump has said TPP would benefit special interests that plan to "rape" this country.

Mexico has said it could "modernise" NAFTA if the other two members agree.

The peso, the world's worst-performing currency this year, took its biggest two-day tumble in more than 20 years following Trump's victory, while Mexican stocks .MXX diverged from rallying USA equities for a second day on Thursday, losing almost 5 percent. Brazil's real slid 1.33 percent, to 3.2095 per dollar, even though some analysts said they saw a limited impact in Brazil from a Trump presidency.

"Everybody loves US assets, so hence why the emerging markets currencies and equities and obviously their own bonds are all under pressure", said Dean Popplewell, chief currency strategist at Oanda in Toronto.

Pitching a protectionist message to USA workers disaffected by globalisation, Trump has vowed to nullify NAFTA if he can not renegotiate it and halt the migration of jobs south to cheaper Mexican factories.

It's understood Mexico is responsible for 20 per cent of vehicle production in North America, which has attracted $24 billion worth of investment in just the last six years alone.

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