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Mexico is urging Donald Trump to reuse agreements reached under the aborted Trans-Pacific Partnership to create a manufacturing powerhouse between the US, Mexico and Canada to compete with low-cost producers in China. The question is whether the US president will take to the idea of re-using the terms of a trade agreement he scuttled himself.

Ildefonso Guajardo, Mexico’s economy minister, said in an interview with the Financial Times that elements of TPP could be used to renegotiate the North American Free Trade Agreement between the three countries. His comments came as the US president agreed not to scrap Nafta, after repeated threats to tear it up – and then backtracked again on Sunday, telling CBS news he could still terminate the pact if the renegotiations failed to provide “a fair deal for all”.

On the other side of the Atlantic, European leaders warned Theresa May over her “completely unreal” expectations of a swift trade deal as they gathered in Brussels to agree on a tough opening stance for Brexit talks.

In Asia Pacific equities, futures tip Sydney’s S&P/ASX 200 index to open down 0.1 per cent, while in Tokyo the Topix is expected to climb 0.3 per cent when trading begins.

Markets are closed today in Hong Kong, China, India, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand and Vietnam.

Corporate earnings reports out today include Yamaha, Kyocera and Rohm.

The economic calendar for Monday should be taken with a glass of water (all times Hong Kong):

  • 08.00: South Korea imports, exports and trade balance
  • 08.30: Japan Nikkei manufacturing PMI (final)
  • 09.00: Australia Melbourne Institute inflation gauge
  • 11.30: Thailand consumer price index

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