China Stimulus, Tariffs, Fed: What Will Move Asia Stocks in 2025

  • Trump’s policies, dollar strength to weigh on Asia’s markets
  • Beijing’s measures will be key driver for region’s stocks
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The looming US-China trade war will test any hope for a boost in Asian equities this year, though stronger stimulus measures from Beijing will remain a key focus for investors in the region.

The prospect of sweeping tariffs imposed by US President-elect Donald Trump and the risk of a hawkish Federal Reserve may weigh on Asian assets. These factors may extend the MSCI Asia Pacific Index’s 16 percentage-point underperformance in 2024 to the S&P 500 gauge.