Observers said there were concerns about the impact of Trump’s planned tariffs, which he said would have a particular focus on China, fuelling talk of another trade war between the economic superpowers.
Pepperstone Group’s head of research Chris Weston said Beijing may have had an eye on this in its announcement.
“Many feel that China is keeping its tactical powder in play for such time as the Trump-China tariff negotiations build, and they can respond in a more targeted fashion to stem the likely economic fallout,” he wrote.
“In the short-term, however, it does suggest downside risk to China/HK equity and the yuan.”
Meanwhile, bitcoin continued to push to new highs, hitting a record US$81,891 on Monday on optimism that Trump will ease regulations surrounding the cryptocurrency.
“We shouldn’t expect this bullish trend to be interrupted for a long time – about a year. The next level for me is US$100,000,” Stephane Ifrah, of French crypto asset management company Coinhouse, told AFP.
Meanwhile, researchers at Bank J. Safra Sarasin offered a largely upbeat outlook for the next year.
They wrote in a report that “2024 ends with stronger economic growth, more balanced labour markets and lower inflationary pressures than we expected a year ago. In particular, the US economy was more resilient and is still headed for a soft landing”.
“Yet President-elect Donald Trump’s policy proposals could lead to heightened macroeconomic volatility. Deregulation and tax cuts would boost nominal growth, but a trade war would hurt growth and raise prices.”
https://www.channelnewsasia.com/business/asian-stocks-struggle-china-support-plan-bitcoin-record-4740746
