(Bloomberg) -- Mexico’s stock market soared the most in the world on Thursday as investors piled in following the news that the country was excluded from President Donald Trump’s plan to impose tariffs on trading partners.

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The benchmark Mexbol index jumped as much as 2%, a rare bright spot on a day stocks sank across the globe as US levies reverberated through global markets. The gauge closed 0.5% higher amid a broad rally led by financial companies including Grupo Financiero Inbursa SAB de CV and Regional SAB de CV.

Local equities were also boosted by falling rates as traders recalculated odds of interest rate cuts globally. Yields on 10-year Mbonos dropped more than 19 basis points, fueling gains in consumer, discretionary and real estate companies in the first full trading day after Trump’s announcement. He exempted neighbors Canada and Mexico from his highly anticipated Liberation Day event in which he hit imports from most countries with duties.

“Mexico emerges unscathed from Liberation Day,” said Bradesco BBI strategist Rodolfo Ramos. “Not only did the executive order leave Mexico out of the picture, it also provided an exit ramp for the US to suspend all previously announced tariffs and leave a lower 12% tariff on exports that are not USMCA-compliant.”

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Strategists, however, cautioned that the country remains in an on-and-off trade dispute with the US, its biggest trading partner, including previously announced levies and others on the automotive sector that come into force Thursday.

Mexico President Claudia Sheinbaum has yet to retaliate on the previously imposed tariffs, choosing to negotiate with Washington. In a press conference on Thursday morning, Sheinbaum claimed that the absence of new US tariffs on Mexico is due to “respect.”

(Updates with closing prices throughout)

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