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Asia struggles on forex and flows after Trump win

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Asia struggles on forex and flows after Trump win

"We are in uncharted territory because Trump has not articulated an Asian policy nor does he even have an identifiable cadre of Asian advisors", Klingner added. However, despite some of his rhetoric during the campaign, Trump hopefully recognizes Washington is not, to use a piece of jargon from worldwide relations, an all-powerful hegemonic power.

Trump is better at campaign rhetoric than Hillary Clinton.

"It's clear he knows next to nothing about the area and the problems there, and it will take him and his administration a long time to get up to speed", Straub said.

In a report in October, the US treasury said that China did not fulfill the three criteria now necessary to be labeled a currency manipulator (which are having a large trade surplus with the United States, engaging in persistent and one-sided intervention in foreign-exchange markets, and having a material current account surplus). We could see an Abe government push to more fundamentally revisit or overturn Article 9 of the Constitution, allowing Japan to build a more traditional "offensive" capability for its forces.

"Since Trump has been elected President, uncertainty in Sino-US relations has increased across the board", Jia said.

RCEP groups the 10 members of the Association of South East Asian Nations plus China, Japan, South Korea, India, Australia and New Zealand, but not the United States.

But slapping retaliatory tariffs on Chinese goods would be more hard because it would require congressional approval - a problem given that Republican leaders have been opposed to legislation to punish Chinese currency devaluation with duties, Scissors said. "If President Trump injects massive fiscal stimulus and protectionism then we will see a MUCH weaker CNY and CNH", Michael Every, head of Asia-Pacific financial markets research at Rabo Bank, said in a written response to AFP, referring to both the onshore and offshore yuan quotes.

"The biggest threats to the economy stem from Trump's protectionist stance on trade, anti-immigration policies and the weakening of government finances stemming from expected tax cuts", Sarah Boumphrey of Euromonitor International said in a report.

"Despite the instability North Korea causes, Beijing is willing to keep supporting it so long as it can be a hedge against U.S. military power in the region". That has put downward pressure on China's currency, and policymakers have switched to propping it up, rather than holding it down, economists say. Such a decision would be welcomed in Beijing.

The central parity rate of the renminbi lost 230 basis points, falling to 6.8115 against the dollar Friday, breaking the psychologically-important threshold of 6.80 for the first time since Sept 2, 2010, according to data from the China Foreign Exchange Trade System.

"I really question how Trump will respond to all these issues", says Patrick Poon, a China researcher for Amnesty International.

"They could try to address Trump's concerns and/or retaliate".

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FP: A line of presidents have failed to make substantial diplomatic headway with North Korea.

Minneapolis Federal Reserve Bank President Neel Kashkari on Wednesday said he sees continued sluggish growth ahead for the USA economy, unless lawmakers and the president "get going" on policies to boost productivity and population.

And while the current administration has slapped Pyongyang with several rounds of heavy sanctions, the Hermit Kingdom's brazen rocket launches and nuclear detonations continue.

This interview, conducted by email, has been condensed and edited.

What's more, during one week in October, the North launched what are thought to be two Musudan intermediate-range ballistic missiles - one on October 15 and another on October 19.

Hours after the aforementioned dual missile test, US Secretary of Defense Ash Carter met with South Korea's minister of defense, Han Min Koo, at the Pentagon.

That could help Washington recruit allies to pressure Beijing, said Haenle of the Carnegie-Tsinghua Center. The President-elect, he says, is committed to a "strong United States with enhanced military power".

Trump will now have to quickly transition from a businessman into a statesman.

"North Korea will of course seek to use that time to its own advantage, which will not be to ours", Straub said.

"This scenario is still subject to considerable uncertainty", said Boumphrey.

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