Looking for a silver lining

GLOBAL markets look set for a volatile ride in 2017 on the back of several key issues.

On Jan 20, US President Donald Trump took office following one of the most controversial election campaigns in history. As he settles in, all eyes will be on the extent to which his administration acts on a potentially disruptive political agenda.

Here in Asia, arguably the most immediate effect will be felt from Mr Trump's protectionist instincts. To date, Trump has already taken several steps towards protectionism, including withdrawing from the Trans-Pacific Partnership and directing the secretary of commerce and US trade representative to identify and end "foreign trading abuses that unfairly impact American workers". Although he has not followed through on his promise to "label China a currency manipulator" on his first day in office, an all-out Sino-American trade war remains a possibility, given the fact that his choice for US trade representative is a long-time critic of China's trade practices, Robert Lighthizer.