Summary

• A beneficiary of nearshoring, Mexico is a real economy market with indirect exposure to the AI infrastructure build-out.
• Recent relative outperformance driven by industrials and materials, with supportive valuations and a rate-cutting cycle.
• The 2026 United States-Mexico-Canada Agreement (USMCA) review is the key near-term event, likely to shape future investment flows and trade dynamics.

By Tae Yoon Kim, CFA, FRM, Manager, Global Investment Research | Alex Nae, M.Sc., Quantitative Research Analyst, Global Investment Research

Following Brazil[2], we continue the series of short insights into LatAm markets with an

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