The error says that there are characters that do not exist in ASCII (they are unicode) Try using:
newStr = u'Lala*=#&%@<>_?!:;-'"/()¥¡¿'
It should be declared as Unicode, and u'something instead.
This hardly works with most python shells, so make sure your IDE supports Unicode and that the file you are using has a unicode declaration at the top.
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