20/01/2025
Indian stocks are falling amid uncertainty over the US economic outlook ahead of Donald Trump's second term. Foreign institutional investor selling, rising US bond yields and investor caution ahead of third-quarter earnings reports were the main reasons weighing on Dalal Street.
〽️〽️〽️ Economic uncertainty: A second Trump administration could significantly reshape the economic landscape in Asia, especially through its trade policies and protectionism. Countries that are heavily dependent on US trade, such as China, Japan, South Korea and Vietnam, could face challenges as the US prioritizes US interests through tariffs and trade deals. Trump's "decoupling" from China could lead to a shift in production and sourcing strategies, and Southeast Asia - especially Indonesia, Malaysia and Thailand - could benefit from increased foreign investment as companies diversify their supply chains.