MarketMoodz
Asian Investors Stick with U.S. Assets Despite Trump Rhetoric
Asian investors continue to favor U.S. assets despite recurring trade rhetoric from former President Trump, Eric Cantor, vice chairman of Moelis & Company, told CNBC’s Squawk Box Asia. The flow persists across Southeast Asia, North Asia, Japan and Korea, underscoring that policy noise has not yet derailed cross-border capital into U.S. markets.
Key Takeaways
- Eric Cantor says Asian investors still prefer U.S. assets, citing demand from Southeast Asia, North Asia, Japan and Korea.
- Singapore is highlighted as a key hub—with U.S. investment stock cited as rising from SGD 292 billion in 2018 to SGD 574 billion in 2022—and thousands of American companies operating there.
- Policy rhetoric and export controls (notably on AI chips) have so far had limited impact on near-term financial flows into the U.S.
- Investor demand may keep supporting U.S. equities and the dollar, but sector exposures (tech, high-end manufacturing, semiconductors) are the most sensitive to policy shifts.
People Involved
- Eric CantorVice Chairman, Moelis & Company
- Gan Kim YongDeputy Prime Minister, Singapore
Entities Involved
- Moelis & Company (MC)Investment bank; Eric Cantor's employer and source of commentary
- CNBC (Squawk Box Asia)Broadcast outlet where Cantor spoke
- Government of SingaporeRegional hub and interlocutor with U.S. on trade and investment
- RealClearPoliticsSource cited for GOP favorability/unfavorability polling snapshot
MarketMoodz Analysis
For investors, Cantor’s remarks signal that headline political friction has not yet translated into a sustained pullback from U.S. assets among Asian allocators. Persistent demand from Southeast and North Asia, plus Japan and Korea, provides a tailwind for U.S. equity markets and supports dollar strength, particularly for multinationals with deep U.S. exposure. That pattern means portfolio managers with global mandates may keep overweight U.S. equities or maintain U.S.-centric sleeves to capture stability, while risk managers should track any policy steps that could widen risk premia.
The Singapore data in the CNBC piece—U.S. investment stock rising from SGD 292 billion in 2018 to SGD 574 billion in 2022 and thousands of American firms operating locally—illustrates how regional hubs channel capital into the United States. Historically, capital flows have proven stickier than political rhetoric: the 2018–19 trade skirmishes dented sentiment but did not reroute large volumes of FDI and portfolio allocations long term. That said, specific sectors are vulnerable; export controls on AI chips and supply‑chain reshoring increase uncertainty for tech and high‑end manufacturing, suggesting active sector rotation could outpace broad market moves.
Watch lists for investors: concrete policy actions (new tariffs, enforcement of export controls), cross‑border flow data (FDI and portfolio inflows), corporate capex signals, and diplomatic engagements—especially between Singapore and Washington. Also monitor political indicators such as congressional composition and public polling as they inform the probability of substantive trade or industrial policy changes. Note: several numerical claims in the CNBC piece could not be independently verified from the original source and should be treated as provisional until confirmed by official statistics.
Source: Original Article