Asian investors extended a rally on Tuesday, tracking another Wall Street record as investors cheered a fresh trade deal between the United States and Mexico that brings an end to one row picked by Donald Trump that had rattled global markets.

The agreement raises hopes the two-decade-old North American Free Trade Agreement (Nafta), torn up by the White House soon after Mr Trump's election, can be salvaged after Canada rejoins talks on Tuesday.

The pact was described by the US president as "a big day for trade" and it sent the S&P 500 and Nasdaq to fresh all-time highs, while the Dow broke 26,000 for the first time since January.

Details of gains and concessions in the deal were only starting to emerge on Monday. Mr Trump threatened he still could put tariffs on Canadian-made cars if Canada did not join its neighbours and warned he expected concessions on Canada's dairy protections.

"I think with Canada, frankly, the easiest we can do is to tariff their cars coming in. It's a tremendous amount of money and it's a very simple negotiation. It could end in one day and we take in a lot of money the following day," Mr Trump said.