Trump’s election victory rattles Asian markets

by / ⠀News / November 14, 2024
Trump's election victory rattles Asian markets

Donald Trump’s election victory has sent shockwaves through Asian financial markets. Investors are worried about the impact of his proposed policies on inflation, interest rates, and global trade. Trump has threatened to impose tariffs of up to 60% on imports from China.

Economists warn that such measures could hurt both the U.S. and global economies. The prospect of higher tariffs has already caused Asian currencies to tumble. In Singapore, DBS Bank’s chief economist predicts that a Trump administration will lead to tighter monetary policies worldwide.

This is because Trump’s plans for tax cuts and increased spending are expected to boost inflation in the U.S.

The regional tech industry is also bracing for potential disruptions from Trump’s trade policies. Many Asian companies rely on exports to the U.S. market and could be hit hard by new tariffs.

Trump’s election clouds Asian markets

Oil prices are another concern. Some analysts believe they could top $100 per barrel due to increased tensions in the Middle East under a Trump presidency. Despite the uncertainty, some Asian leaders have been quick to congratulate Trump.

Philippines President Marcos and India’s Prime Minister Modi both sent messages of support to the president-elect. In Malaysia, officials remain optimistic about the country’s economic prospects. They predict that the recent boom in IPOs will continue into 2025, even as other markets struggle.

As Trump prepares to take office, Asian businesses and investors are bracing for a challenging period ahead. The region’s economies could face headwinds from higher U.S. interest rates, a stronger dollar, and the threat of a trade war.

About The Author

Kimberly Zhang

Editor in Chief of Under30CEO. I have a passion for helping educate the next generation of leaders. MBA from Graduate School of Business. Former tech startup founder. Regular speaker at entrepreneurship conferences and events.

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