Powered by MOMENTUM MEDIA
subscribe to our newsletter

Trump presidency not a big threat to Asia

Fears that incoming US president Donald Trump will have a negative impact on the Asian bond and equity market are over-inflated, according to global asset manager AllianceBernstein.

The protectionist stance the new US administration is expected to take has dampened the outlook for emerging markets such as Latin America and eastern Europe, however AllianceBernstein (AB) portfolio manager Brad Gibson said the firm didn’t “share the widespread pessimism” on Asian markets.

“Far from creating a vacuum in Asian trade and investment, a scaling back of US engagement with the region would leave more room for companies from China, India and Japan to pursue their ambitions there,” he said

Additionally, AB said the proposed tariff on Chinese goods was unlikely as it would “increase the cost of technology and other goods for US consumers” and would be difficult to implement due to the complexity in global supply chain structures.

“Many iPhone component manufacturers, for example, are based in Asian countries outside China, and the cost of relocating such manufacturing processes to the US would be prohibitive in the short term,” noted AB chief investment officer for Asia-Pacific ex Japan equities Stuart Rae.

Advertisement
Advertisement

PROMOTED CONTENT


“Our base case is that the US will make some well publicised moves against steel and auto imports,” he said.

“These industries account for a relatively small proportion of Asia’s exports, however, and such measures are more likely to hurt Mexico, in the case of autos, than any Asian country.”

[Related: Trump victory a lesson in brand power]

Trump presidency not a big threat to Asia
mortgagebusiness

Latest News

The chief of Australia’s largest bank has said lenders should act pre-emptively and shift their floor rates for mortgage serviceability am...

Total household wealth reached a high of $13.4 trillion in the June quarter, primarily due to rising property prices, according to the Aust...

The property exchange settlement platform has been granted approval to establish an Electronic Lodgement Network in the ACT.  ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.