Porfirio Lobo gestures to supporters as he gives his victory speech in Tegucigalpa, Honduras, early Monday. (Eduardo Verdugo/Associated Press)

Honduras' newly elected president, Porfirio Lobo, faces an international crisis even before taking office: many countries of the hemisphere refuse to recognize the election's result in the wake of the country's recent coup.

Election officials said Monday that the conservative rancher had a strong lead in Sunday's presidential contest and his rival, ruling party candidate Elvin Santos, conceded defeat.

But Lobo must now convince the world the election was legitimate, coming as it did five months after President Manuel Zelaya was ousted. Zelaya, holed up in the Brazilian embassy in the Honduran capital, has condemned the vote.

But it would appear voters rejected Zelaya's call to boycott the election. Election organizers said that more than 60 per cent of registered voters cast ballots, which represents an increase from the last election.

The United States says it will accept the results of the vote, but most Latin American countries, led by Brazil, say they won't recognize a coup-backed government.

Canada's Minister of State for Foreign Affairs Peter Kent said Monday he was encouraged by reports indicating elections appear to have been run freely and fairly, with no major incidences of violence.

Elections 'an important first step'

"The elections were an important first step in restoring Honduras to democratic legitimacy," Kent said in a release.

The United States assistant Secretary of State Arturo Valenzuela said Monday that Honduras' election is an important step forward for the country but not enough to fully restore democracy.

Valenzuela said Honduras' leaders should establish a government of national unity and a truth commission.

The current crisis began after the Honduran army rousted Zelaya from his bed on June 28 and forced him into exile at gunpoint.

The de facto government has suspended civil liberties, silenced opposition broadcasters and sent police and soldiers into the streets to face off with protesters.

The political crisis stemmed from Zelaya's plan to hold a referendum that could have changed the constitution to allow longer terms for the president.

Lobo and Santos, both wealthy businessmen from the political old guard, signed a pledge to honour the constitutional ban on running for re-election.

Congress, the courts, the attorney general and much of Zelaya's own party endorsed his ouster, but the move was almost universally condemned by other nations and it presented President Barack Obama with his first major policy test in Latin America.

While the U.S. cut aid to Honduras after the coup, officials said they would recognize a fair vote to elect a new president when Zelaya's term ends in January.

With files from The Associated Press