Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin
Indonesia and Malaysia have become standout performers in Asia this month, attracting significant foreign investment as global investors reduce their exposure to most other markets in the region. In August, through Thursday, overseas funds have purchased $684 million worth of Indonesian stocks and $241 million in Malaysian shares, marking a second consecutive month of inflows for both markets.
Key Takeaways:
Foreign Inflows Despite Regional Sell-Off: While most Asian markets have seen outflows, Indonesia and Malaysia have attracted substantial foreign investment. Indonesia received $684 million, and Malaysia $241 million in foreign equity inflows, contrasting sharply with the $1.8 billion outflow from India, a market that has been a favorite among emerging market investors.
Factors Behind the Inflows: Indonesia's fiscal discipline and robust economic growth are key drivers behind its attractiveness to foreign investors. Malaysia, on the other hand, is benefiting from the global artificial intelligence (AI) boom, having secured billions of dollars in data center investments. These factors have also led to the ringgit and rupiah being top performers against the dollar among 23 emerging market currencies.
Uncertainty Ahead: Despite the strong inflows, there is uncertainty about whether Indonesia and Malaysia can maintain this momentum. The expected rate cuts by the Federal Reserve could enhance the appeal of emerging markets more broadly, potentially redistributing global capital. Additionally, political developments in Indonesia, such as nationwide protests against proposed election law changes, have introduced volatility, as seen with the recent slide in Indonesian stocks and the rupiah.
As investors weigh the potential for further gains in Indonesia and Malaysia against broader regional and global trends, the focus will likely remain on how these markets navigate both domestic challenges and shifting international financial conditions.
Comments
Post a Comment