\nWith the US election day upon us, we reflect on what could happen to Asian markets
\nTrump: ever the contraversial figure. Image: doddis77\/Shutterstock
\nWe are experiencing a sinking, fearful sensation.
\nAll around the world, people are having to come to terms with the fact that come tomorrow, Donald Trump could be named the new president of the United States.
\nIt\u2019s undeniable that Hillary Clinton, whilst receiving her fair share of unpopularity, is generally seen as the more stable choice for much more than just political correctness. Offensive statements aside, a Trump presidency could lead to severe economic repercussions worldwide.
\nElements of Trump\u2019s controversy are being likened to the UK\u2019s shock Brexit vote, which not only saw the British economy nosedive, but led to market shake-ups as far-reaching as Japan. Trump himself is emphasising the comparisons.<\/p>\n
They will soon be calling me MR. BREXIT!
\n\u2014 Donald J. Trump (@realDonaldTrump) August 18, 2016<\/p>\n
The following list is largely conjecture \u2013 after all, Trump\u2019s ever-changing policy positions are well documented, but these are five potential after-effects of a Trump victory, which could impact Asia.
\n1. The US dollar will fall
\nHow much could it fall? Imge: David Smart\/Shutterstock
\nWhile the dollar has been gradually strengthening since May 2016, many analysts are predicting an initial sinking of the dollar following a Trump win.
\nIn the past week alone, the dollar index has slipped slightly, coinciding with the polls showing Trump\u2019s lead edging forward.
\nOthers disagree, believing that the dollar could strengthen against developing nation currencies \u2013 such as the Mexican peso \u2013 due to concerns that Trump will enable protectionist trade policies which will damage their economies.
\nEssentially though, as so little is known about Trump\u2019s economic policies, the dollar could fall simply as the result of uncertainty.
\nAs the sterling plummeted after Brexit, a \u201cbuying spree\u201d among Asian investors took place in the UK. We can assume a similar scenario would ensue if the dollar dropped dramatically.
\nMore: Tell us what it\u2019s worth to live where Donald Trump grew up
\n2. It could cause global recession
\nSome analysts predict worldwide recession. Image: Who is Danny\/Shutterstock
\nIt gets more dramatic still.
\nSimon Johnson, economist at the Massachusetts Institute of Technology believes that a Trump presidency would \u201clikely cause the stock market to crash and plunge the world into recession.\u201d
\nHe continued that Trump\u2019s \u201canti-trade policies would cause a sharp slowdown, much like the British are experiencing\u201d because of Brexit.
\nA Trump victory would most likely lead to a knee-jerk sell-off, writes the New York Times. \u201cMany investors will choose to sell stocks and ask questions later.\u201d
\nSimilar warnings have been coming in thick and fast. Dutch pension fund manager, Hans Op\u2018t Veld, head of listed real estate at PGGM, which looks after almost USD13.5 billion in real estate equities, has advised investors to sell Hong Kong property stocks in the event of a Trump victory.
\nSuch a result could lead to greater protectionism and impact world trade, and be as significant as the UK Brexit vote which shook up Japanese real estate stocks, he warned.
\n\u201cThe minute Trump gets elected I would worry about Hong Kong, not so much about the US,\u201d he says, \u201cChina is the producer for the world, so you don\u2019t want to be in China.\u201d<\/p>\n
More: The non-political reason noone wants Donald Trump real estate
\n3. Luxury real estate may suffer
\nExperts think Clinton is better for the luxury residential industry. Image: mariakraynova\/Shutterstock
\nA global survey from Mansion Global on the US election revealed that general consensus is that a Clinton vote would be most beneficial for the luxury residential real estate markets worldwide.
\nThe survey, which was amongst brokers, listings agents and other industry experts, revealed that 83 percent of respondents favored Hillary Clinton as the best choice for the luxury real estate industry, with only 17 percent citing Trump.
\nOn the majority side, one respondent wrote: \u201cHer clear experience on the national and international level will provide the sense of certainty that the market needs. Donald Trump is viewed by me and many others as such a \u2018Wild Card\u2019 that he will create an enormous sense of uncertainty here and abroad and that is never good for the global luxury real estate market.\u201d
\nIn contrast, a Trump supporting respondent feels the \u201cluxury real estate market would thrive because the wealthy would feel more secure that they won\u2019t be taxed out of existence.\u201d
\nMore: Donald Trump behind two luxury residential towers in India
\n4. Anti-globalisation sentiment could hurt Asia
\nTrump\u2019s view on free trade agreements has always been negative. Image: Baur\/Shutterstock
\nThe Republican party has always been pro-business and pro-free trade, but this could end with Trump, who has called for American \u201ceconomic independence\u201d which includes opting out of long-standing trade arrangements.
\nHe\u2019s also called the Trans-Pacific Partnership (TPP), a 12-country trade deal that would encompass around 40 percent of total global output, a \u201cterrible deal\u201d for the U.S.
\n\u201cAsia stands to lose from a reversal of globalization,\u201d writes Kim Iskyan, editor of the Truewealth Asian Investment Daily. \u201cIf tariffs in the U.S. on goods from Asia increase, the entire relationship breaks down.\u201d<\/p>\n
More: Donald Trump interview \u2013 \u201cI am hard to please and pleased when I am\u201d
\n5. Commercial real estate will suffer
\nImage: ImageFlow\/Shutterstock
\nTrump may be a real estate mogul, but his victory could damage the commercial real estate sector, The Street reports.
\n\u201cA Trump presidency would cause more emotional investing than quantitative and there would be a tremendous amount of volatility in the commercial real estate world, primarily from the liquidity side,\u201d said Jay Rollins, CEO of JCR Capital.<\/p>\n