US Election Result Could Worsen Headwinds for Asia Pacific, S&P Says
Date: Nov 14, 2024 | Time: 17:05 GMT+5:30
The election of US President-elect Donald Trump is expected to bring heightened policy and market volatility to the Asia-Pacific region, S&P Global Ratings said in a recent release. Potential escalations in US-China trade tensions and uncertain monetary policies are among the primary concerns through 2025.
According to Eunice Tan, head of credit research at S&P, renewed tariffs on Chinese exports would likely slow export growth and exacerbate deflationary trends in China, impacting the trade-dependent region. Additionally, the region's issuers are facing uncertainty over US monetary policy easing, with S&P’s rating outlook bias in Asia-Pacific declining to -3% by October’s end. Key sectors such as chemicals, real estate, building materials, and retail are projected to experience the largest negative outlooks.
S&P noted that volatility and geopolitical challenges could further widen the gap between strong and weak industry performers, increasing pressures for issuers within the region.
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