ANALYST VIEW-Leftist wins Mexican election, exit polls show

MEXICO CITY, July 1 (Reuters) - Leftist outsider Andres Manuel Lopez Obrador won Mexico's presidential election handily on Sunday, exit polls showed, setting the stage for a government that will inherit tense relations with Washington and the scrutiny of nervous investors.

Mexico's peso firmed by more than 1 percent against the dollar in Asian markets and extended gains after Lopez Obrador's rivals conceded.



"We have witnessed today a very profound reshaping of the country's political map and the balance of political forces. The balance of power at the federal and local levels has definitely shifted to the left and the implications of the new political reality for near-term policy direction and for how the different institutions will operate going forward is unclear."

DUNCAN WOOD, DIRECTOR OF THE WILSON CENTER'S MEXICO INSTITUTE "Now all our eyes turn to the victory speech tonight what kind of message does he send out? Does he want to make sure Mexico doesn't experience any volatility in next few days and weeks? Is he willing to work with other parties to make a better Mexico? If thats the case, then people will be very reassured." " 1/8For U.S. relations 3/8 The crucial moment is not what Andres Manuel says its what kind of congratulatory message is sent from Donald Trump or the White House. This is an opportunity to put a reset on the relationship."


"His emphasis will be greater social and investment spending from savings arising from austere and anti-corruption practices. He has vowed to be austere on the fiscal front, which I think he will comply with at least initially in 2019. I don't think his speech tonight will address openly financial markets. Thats not his strength. But he will likely be conciliatory and may have some nice gestures for the private sector." GABRIELA SILLER, ECONOMIST, BANCO BASE

"The exchange rate appreciated after Meade declared himself a loser, which in some way gives the market peace of mind that there will be no confrontation between the different candidates, and because the exit polls confirm the results of the previous polls." "We believe it will continue to oscillate between 19.70 and 20.30 after the elections, but it will depend a lot on what the new president says in terms of public finances and the commercial relationship with the United States."

(Reporting by Mexico City newsroom)