Trump policies cast doubt on Asian stocks, but opportunities remain: Robeco

Joshua Crabb, head of Asia-Pacific equities at Robeco, speaks about the global stock market outlook for 2025, during a press conference at the Federation of Korean Industries headquarters in Seoul, Tuesday. Courtesy of Robeco

While President-elect Donald Trump's policies have led to widespread negative forecasts for the Asian stock market in 2025, there are still ample opportunities to find value within Asian equities, according to international asset manager Robeco, Tuesday.

At a press conference held in Seoul, Joshua Crabb, head of Asia-Pacific equities at Robeco, forecast that although tariffs may increase as Trump implements his "America First" policy, various economic stimuli under consideration in Asian countries could mitigate the impact.

Crabb also assessed that the tariff levels proposed in Trump's campaign pledges are unlikely to be fully realized in practice. Even in the worst-case scenario, individual countries could reduce tariffs through trade negotiations.

He further anticipated that opportunities would emerge in the Asian market due to the high valuations of the U.S. stock market. While these valuations are supported by strong earnings performance, the elevated expectations in the U.S. market could make it increasingly difficult to sustain its bullish trend.

In 1999, global liquidity also flowed dominantly into the U.S., but as the bubble burst, the market suffered a more significant decline, Crabb added.

Crabb highlighted that the Asian market is currently undervalued compared to the U.S. "Expectations are very low, creating a great opportunity," he noted.

Korea received positive evaluations for the steady progress of its Corporate Value-up Program. Drawing on Japan’s experience, Crabb pointed out that implementing value-up strategies can yield significant benefits regardless of broader economic conditions, thereby creating meaningful investment opportunities.

India remains highly attractive, with recent stock price corrections presenting a buying opportunity. Meanwhile, China's stock prices are at their lowest levels, suggesting that even minor positive developments could trigger a sharp rebound. Members of the Association of Southeast Asian Nations were also highlighted as appealing due to supply chain diversification and increased foreign direct investment.