“Reciprocal Tariffs” may accelerate policy easing in Asia. Asian credit fundamentals remain relatively healthy. Domestically-oriented areas may be preferred.
Trump’s “Retaliatory Tariffs” sparks risk-off. A re-shape in global trade relations is underway, that will give rise to relative winners and losers.
Risk-off mode with tariffs coming into effect amid strained alliances.
The US tariffs could be a negotiation tool for concessions. We don’t expect this to be US Inflationary, and see divergent winners and losers ahead.
“Exceptionalism” drives earnings growth. China’s evolving policy response and strong US liquidity are other supportive factors for risk assets.