(Updates following Japanese market open)

By Kevin Buckland and Ankur Banerjee

TOKYO, Nov 26 (Reuters) - The dollar rallied against

major peers on Tuesday after U.S. President-elect Donald Trump

pledged tariffs on all imports from Canada and Mexico, and

additional tariffs on China.

Stocks declined, giving back some of the robust gains of the

previous session, when they were buoyed by the nomination of

fund manager Scott Bessent as Treasury Secretary, considered by

investors as a voice for Wall Street in Washington.

Bessent's appointment had also led to a sharp fall in U.S.

yields as investors scooped up Treasury bonds, sending the

dollar sliding in the previous session.

The dollar jumped 2% to 20.679 Mexican pesos as of

0040 GMT on Tuesday, and climbed 1% to C$1.4130. It

strengthened 0.3% to 7.2681 yuan in offshore trading.

The U.S. currency added 0.14% to 154.43 yen, while

the euro slipped 0.5% to $1.0444.

"It's almost as if Trump wants to remind markets who is in

control, after nominating Scott Bessent as Treasury Sec - a man

markets expected to cool Trump's potency," said Matt Simpson,

senior market analyst at City Index.

"With the Canadian dollar rising against the Mexican peso,

markets are assuming this will hit Mexico the hardest."

Sterling lost 0.35% to $1.2526, and the Aussie

dollar slumped 0.8% to $0.6453.

Australia's stock benchmark eased 0.36%, a day after

rising to a record high.

Japan's Nikkei lost 1.3% and South Korea's KOSPI

eased 0.4%.

Chinese markets are due to open shortly.

U.S. S&P 500 futures pointed 0.3% lower following a

0.3% gain in the cash index overnight, when the small-cap

Russell 2000 index also hit an all-time high.

Trump said that on his first day in office he would impose a

25% tariff on all products from Mexico and Canada, and an

additional 10% tariff on goods from China, citing concerns over

illegal immigration and the trade of illicit drugs.

"It was just last month that Trump said that 'the most

beautiful word in the dictionary is tariff', so there really

should not have been a surprise in Trump's intention, just in

the timing of the comments," said Sean Callow, a senior FX

analyst at ITC Markets.

"The fall in trade-sensitive currencies makes sense, and

should persist near term."

Bitcoin was steady at around $94,111, finding its

feet following a pullback from last week's record high at

$99,830. The token has benefited from speculation of an easier

regulatory environment for cryptocurrencies under Trump.