Why Trump could be good for Asian Equities

'AMERICA First' is the message front and centre of the inauguration speech of the newly-appointed President Trump. Within the first day of taking office, Mr Trump promptly issued an executive order to withdraw US from the multi-year negotiated Trans-Pacific Partnership. This setback appears to have rendered futile years of time and effort in forging trade ties for various nations (including Singapore) and the world has had a first taste of a policy initiative under the new US administration. Together with Brexit and the general rise of populism in 2016, this is yet another indication that the world order and geopolitical situation are in a state of change; and new rules of engagement between governments and citizens, and between governments to governments will evolve. Some long-standing practices will discontinue and new ones may spawn.

While this backdrop of uncertainty and unpredictability may give rise to general apprehension and fear of the unknown, it also makes investment management in this time of change challenging and exciting. No more so than in Asia where the changing landscape in 2017 in the Trump era may turn out to be actually good for Asian equities. Here are three possible scenarios.

Increased investment in US