Asian Markets Show Resilience Amidst Tariffs, Report Suggests

UOBAM Analysis Points to Potential Rally if Trade Negotiations Yield Better Terms

Asian economies are demonstrating a notable ability to withstand recent U.S. tariffs, with some analysts suggesting a potential market upswing if upcoming trade negotiations prove favorable. This optimistic outlook contrasts with initial concerns about the impact of protectionist measures.

Navigating Shifting Trade Landscapes

A new Special Report from UOB Asset Management (UOBAM) indicates that Asian markets may even experience a rally if the outcomes of trade talks, set before the August 1st deadline, result in more advantageous terms compared to those initially announced in April. Investors are reportedly recalibrating expectations, acknowledging a departure from past trade arrangements but remaining confident in the region’s capacity to absorb moderate tariffs.

“The majority of Asian economies are likely to recover relatively quickly from the *direct* impact of US tariffs,” explained Colin Ng, UOBAM’s Head of Asian Equities. “A slowdown in exports to the US can be offset by trading with other countries, and in particular, with their Asian neighbours.”

Ng further elaborated on the growing internal strength of Asian economies. “This is because, on the one hand, more and more Asian companies are building globally recognisable brands, and on the other, the Asian consumer base is now large and affluent enough to absorb these products. That is why ASEAN has taken over from the US as China’s biggest trading partner.”

Comprehensive Market Assessment

The UOBAM report, titled “Will US tariffs derail Asia’s growth?”, provides an in-depth analysis of the short- and long-term ramifications of U.S. tariffs across seven key Asian markets. The study encompasses major exporting nations such as Korea, the Taiwan region, and Singapore, alongside more domestically-oriented economies like Malaysia and Indonesia.

However, Ng also cautioned about potential indirect effects. The primary risk to Asian economies, he noted, stems from the possibility of tariffs triggering a broader global growth slowdown or even a recession, which would inevitably dampen worldwide demand for Asian exports. Nevertheless, based on available economic data, UOBAM does not currently project this scenario as their primary forecast.

UOBAM’s Regional Prowess and Recognition

UOB Asset Management Ltd (UOBAM), a wholly-owned subsidiary of United Overseas Bank Limited, has been a significant player in the financial landscape since its establishment in 1986. With nearly four decades of experience, UOBAM is recognized as one of Singapore’s largest unit trust managers by assets under management.

As of June 30, 2025, UOBAM managed 65 unit trusts in Singapore and oversaw S$37.6 billion in client assets through its subsidiaries. The firm maintains a robust presence across Asia, with operational and investment offices in Brunei, Indonesia, Japan, Malaysia, Thailand, and Vietnam. Strategic alliances and joint ventures, including one with Ping An Fund Management Company Limited, further solidify its expansive network.

UOBAM’s commitment to excellence has been consistently recognized through numerous accolades. The firm has garnered over 380 awards, including being named Best Regional Asset Management Company by Asia Asset Management in 2025. Its digital innovation efforts have also received top honors, such as Best Digital Wealth Management in Asia and Best Robo Advisory Initiative for three consecutive years as of 2024. Furthermore, UOBAM is a leader in sustainable investing, earning awards like Best application of ESG in ASEAN for 2023 and multiple sustainability recognitions in Indonesia and Thailand. Their advancements in artificial intelligence were also acknowledged with the Most Innovative Application of Artificial Intelligence (ASEAN) award for two consecutive years.

For further insights, the full report is available at: uobam.com.sg.