Investing.com-- Donald Trump is set for a second term after winning the 2024 presidential election, with CLSA analysts stating that his protectionist policies and plans for local tax breaks could present headwinds for stocks in the Asia-Pacific region.
Trump’s inflationary agenda is also expected to stem the Federal Reserve’s current easing cycle, supporting the dollar and denting regional currencies, CLSA said. This trend, however, is expected to benefit export-oriented companies with high U.S. exposure. Trump has proposed an additional corporate tax rate cut to 15% from 21%, although this will depend on the Republicans sweeping both levels of Congress.
Stock markets in Asia reacted positively to Trump's election victory this week, given that it cleared a major point of uncertainty for risk-driven markets. But their trajectory remains uncertain, especially given that Trump is likely to enact more protectionist policies.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.
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