TORONTO, Nov 9 (Reuters) - Canada's currency and long-term bonds fell in early trading on Wednesday as investors digested the implications of Donald Trump's U.S. presidential election victory, but soaring gold miners helped push its stock market into positive territory.
The Canadian dollar also came off the worst of its lows overnight, as some of the knee-jerk selling of riskier assets abated.
A 0.6 percent rise in TransCanada Corp, which stands to gain from the potential approval of the Keystone XL pipeline, and a 1.3 percent rise in the overall energy sector also helped push Toronto's main stock market higher.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 22.93 points, or 0.16 percent, at 14,679.77 shortly after open marginally in the red.
"There isn't the panic that I think the numbers were looking like on the open," said Brian Pow, an equity analyst at Acumen Capital Partners in Calgary.
The materials sector, which includes gold miners, jumped 3 percent. Gold jumped nearly 5 percent as investors bolted for safety.
"You have gold, which benefits because all of his policies are inflationary," said Diana Avigdor, head of trading at Barometer Capital Management.
The Caisse de depot et placement du Quebec, Canada's second biggest public pension plan and one of the world's biggest dealmakers, said the result of the election will add to uncertainty in the global economy.
"As a result, we expect to see increased volatility in the months ahead," it said in a statement.
Magna International Inc fell 3.6 percent. The auto parts maker has significant operations in Mexico, responsible for 14 percent of sales in the third quarter. Magna depend on the health of the global automotive industry, which depends on supply chains that cross borders.
Bank of America Merrill Lynch cut its price target on the stock to $36 from $54, citing the election results. Its U.S. shares were at $38.38 on Wednesday.
The Canadian dollar weakened sharply to an eight-month low against its U.S. counterpart.
"Uncertainty equals volatility and volatility typically is a factor that creates an underperformance by high beta currencies such as Canada or the Canadian dollar and that's why it is the weakest performing G10 currency," said Jack Spitz, managing director of foreign exchange at National Bank Financial.
Trump has pledged to renegotiate or scrap the North American Free Trade Agreement if elected, threatening Canada's trade-intensive economy.
The Canadian dollar weakened to C$1.3443 to the greenback, or 74.39 U.S. cents, from Tuesday's close of C$1.3305, or 75.16 U.S. cents. At one point it touched C$1.3525, its weakest since March 1. (Reporting by Fergal Smith, Alastair Sharp, Solarina Ho, Allison Martell and Jeffrey Hodgson; editing by Grant McCool)