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
Malaysia's ringgit climbed on Monday, reaching its highest level in over three years, boosted by additional Chinese stimulus measures that lifted sentiment for regional currencies. The ringgit rose as much as 0.6%, making it the best performer among emerging Asian currencies, trading at 4.099 per US dollar. China's stimulus has had a positive effect, as it remains a significant trading partner for the region.
The ringgit’s stellar quarterly performance, with an impressive 12.6% gain, makes it the top-performing currency in emerging Asia, driven by factors like foreign investor inflows, economic growth, and political stability. OCBC currency strategist Christopher Wong expressed optimism for the MYR outlook, citing strong economic fundamentals, a current account surplus, and foreign inflows.
Chinese stocks surged 6% following the stimulus announcements, which are expected to halt the economic downturn. China's central bank announced it would lower mortgage rates for existing home loans before the end of October, aiming to support the country's struggling property market.
Other Asian currencies, like the Thai baht, Taiwan dollar, and South Korean won, rose modestly, while the Singapore dollar and Philippine peso remained flat.
Investors will focus on upcoming inflation data from South Korea, Indonesia, and the Philippines, as well as a crucial US jobs report, which could influence the Federal Reserve's next move regarding rate cuts.
Meanwhile, Taipei stocks fell by 1.7%, with TSMC dropping 2.5%, and Japan's Nikkei slumped by 4.5% as investors awaited policy direction from incoming Prime Minister Shigeru Ishiba. Shares in Seoul, Manila, and Jakarta also saw declines between 1% and 1.2%.
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