Asia Market Reaction to Tariffs Will Be 'More Orderly' Than Before: UBS

The video discusses the impact of prolonged tariffs on North American economies, highlighting potential damage to Mexico, Canada, and the US. It contrasts this with the Chinese market's response, noting a reduced reliance on the US and a more muted market reaction compared to 2018. The discussion also covers the commoditization of technology in Chinese equities and strategies for managing currency volatility in Asian markets, with a focus on the Indian rupee's defensiveness.

What is the expected impact on the US economy if tariffs are prolonged?

• A boost to core PCE by 0.4% and a hit of 0.8% by 2025

• A boost to core PCE by 0.8% and a hit of 0.4% by 2025

• No significant impact on the US economy

• An increase in GDP by 1.2% by 2025

How does the current positioning in Chinese equities compare to 2018?

• It is much heavier today than in 2018

• It is much lighter today than in 2018

• It is more volatile today than in 2018

• It is the same as in 2018

What is the expected reaction of the Chinese market to the new tariffs?

• An increase in market volatility

• A boost in Chinese equities

• A muted response compared to 2018

• A significant sell-off similar to 2018

Which Asian currency is considered more defensive against volatility?

• Indian Rupee

• Indonesian Rupiah

• Malaysian Ringgit

• Korean Won

What is the expected effect on the Chinese Yuan if tariffs are prolonged?

• Weakening to 7.4 and eventually to 7.5

• Strengthening to 7.0 by the end of the year

• No change in value

• Strengthening to 6.5 by the end of the year