Biggest change to Apac's outlook is Trump-related uncertainty: S&P Global Ratings

TRUMP-RELATED uncertainty - that's the biggest change to the Asia-Pacific's economic outlook, said S&P Global Ratings in a report on Wednesday.

Said Paul Gruenwald, S&P Global Ratings' Asia-Pacific chief economist: "A Trump administration's impact on Asia-Pacific will likely appear in two main areas - one with a large downside and one with a moderate upside.

"The potential downside scenario for Asia-Pacific is trade policy, where Mr Trump has advocated a punitive import tariff of 45 per cent on China stemming from his assessment of currency manipulation. Such an action will almost certainly generate a strong response from the Chinese authorities, and risks starting a trade and investment war between the world's two largest economies, which is in no country's interest."

On the upside, Mr Gruenwald said that infrastructure spending increases and tax cuts could boost US growth, and in turn, raise demand for Asia's exports - at least in the short run.