Asia Views:The US election’s potential impact on Asian markets

US election outcome: Donald Trump has been elected President, defeating HillaryClinton with approximately 309 electoral votes and about 48% of the popularvote. The Republicans maintain control of the Senate (about 52 seats) and theHouse (approximately 240 seats). Not all races have been called as of writing.

Trump’s campaign proposals suggest more stimulative fiscal policy (lower nettaxes, more infrastructure spending), possible shifts in monetary policy (severalupcoming Fed appointments including the Chair), more hawkish trade policy (e.g.

no support for TPP, tariffs on China/Mexico), and a less restrictive approach toregulation (as well as possible repeal of Obama healthcare legislation). Of these,potential changes to trade policy probably pose the biggest downside risk to AEJ.