Asia’s resilience amid Trump’s return, with strong exports, China’s demand boost, and India’s growth, keeps investors promising, contrasting Europe’s declines.
With fund managers feeling the region can better handle tariffs than Europe Asia, including China, is proving unexpectedly resilient for investors even as Donald Trump comes back to the White House. China’s readiness to boost domestic requirement, and India’s fast-paced growth as reasons for optimism, investors cite Asia’s strong exporters, stable supply chains.
Marked by his tax cuts and protectionist stance, in financial hubs across Asia, trading desks saw minimal panic in reaction to Trump’s return, especially among auto and renewable stocks. Shinji Ogawa, co-head of Japan cash equities sales at J.P. Morgan in Tokyo, noted steady buying activity, particularly in industrial and financial stocks, this calm contrasts with the sharp declines seen in Europe. Ogawa said, “Investors are choosing choosy sectors,” noting factors like potential rate rise in Japan and upcoming economic stimulus measures in China.
This drew capital out of markets like Hong Kong and into the S&P 500, while the overwhelming trend from Trump’s first term was to buy U.S. stocks. Dealers report that investors with global mandates or those looking to diversify are sticking with Asian holdings, however, despite some current outflows from India.
Expecting this preference for growth to persist Ken Peng, head of Asia investment strategy at Citi Wealth in Hong Kong, “Given that dollar capital costs aren’t likely to drop significantly, growth-oriented markets like India remain attractive,” Peng described.
Renewed interest in specific Asian sectors is shown by investors. Significant buying activity is there by Japanese automakers, banks, and heavy machinery firms sensitive to capital spending. In Vietnam, shares of industrial park operator Becamex surged, showing optimism about manufacturing expansion. Meanwhile, reaching trade limits, indicating strong demand shares of Kinh Bac City, a developer with a golf and hotel project attached to Trump’s private conglomerate.
Suggesting the region will continue to play a vital role in global investment strategies under Trump’s renewed presidency Asia’s stability, overall, amid trade tensions and its attractive growth prospects have bolstered investor trust.