How a Trump White House could actually help China, Japan markets

Asia and even China are shaping up as surprisingly resilient investment markets as Donald Trump returns to the White House, with fund managers optimistic the region can withstand tariffs better than Europe.

Investors say Asia's exporters and supply chains have been able to better weather trade tensions, that China is ready to bolster its domestic demand and that India's rapid growth is attractive.

Equity desks in the region's financial centres reported little panic as voters ushered Trump back into office on a platform of tax cuts and protectionism - a contrast to sharp declines in European auto and renewable stocks/

"We saw gradual buying continue to pick up," said Shinji Ogawa, co-head of Japan cash equities sales at J.P. Morgan in Tokyo of trade on Thursday, with investors choosing industrials and financials.

"There are a few narratives that don't necessarily allow the 'Trump trade' to dictate everything," he said, pointing out rate rises on the horizon in Japan and a policy meeting in China this week expected to approve measures to boost the economy.

To be sure, the investment playbook derived from Trump's first term has been to buy U.S. stocks and their performance has drawn money out of Hong Kong and in to the S&P 500, dealers said.

But those with global mandates or wishing to diversify are sticking with the Asia bets they have, following a bit of a drawdown - mostly out of India - through October.

"With this environment where cost of dollar capital is unlikely to fall that much...then you're likely to see a lot more preference for growth," said Ken Peng, head of Asia investment strategy at Citi Wealth in Hong Kong.

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