US Election Result Could Worsen Headwinds for Asia Pacific, S&P Says

MT Newswires Live11-14 19:35

US President-elect Donald Trump's victory could exacerbate policy and market volatility in Asia-Pacific through 2025, S&P Global Ratings said in a Wednesday release.

Possible renewed trade tensions between the US and China could negatively impact the trade-oriented region, S&P's head of credit research Eunice Tan said.

For China, increased tariffs will reduce export growth and worsen deflationary pressures, the rating agency said.

Aside from heightened trade tensions, the region's issuers also face increased uncertainty regarding US monetary policy easing and an eroding net outlook bias.

S&P's net rating outlook bias for the region's issuers dropped to -3% as of the end of October, with chemicals, real estate, building materials, and retail having the biggest portions of negative outlooks.

S&P said the gap between strong and weak performers could widen as rising volatility and geopolitical tensions compound challenges for several issuers.

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