The Asian winners of "Trump 2.0": South Korean shipbuilding stocks, Indian electronics stocks, Australian steel stocks, and even Vietnamese industrial parks

Wallstreetcn
2024.11.09 11:46
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Trump's return has reignited global market concerns over tariff policies, yet companies expected to benefit from these policies are experiencing an upward trend. South Korean shipbuilding stocks and Indian electronics stocks surged after the U.S. elections, with Daewoo Shipbuilding & Marine Engineering rising 30% in two days

The "Trump Trade" has ignited market trends, with multiple winners emerging in the Asian markets alongside U.S. stocks and the dollar.

After Trump's victory, the stock prices of South Korean shipbuilders, Indian electronics manufacturers, Australian steel suppliers, and Vietnamese industrial parks have significantly risen. Bloomberg analyzed on November 9 that their common characteristic is that these companies are expected to benefit from stricter "global trade restrictions." Although these restrictions may squeeze supply chains, they will also create new opportunities for companies that can adapt flexibly.

Nirgunan Tiruchelvam, an analyst at Aletheia Capital in Singapore, stated:

Some investors in emerging markets are beginning to shift from a "top-down" Trump trade strategy to focusing on specific industry opportunities in search of alpha returns. An industry-focused investment strategy is gradually taking shape.

Recently, South Korean shipbuilding stocks have soared against a backdrop of a weak market. Hanwha Ocean's stock price has risen by 30% in the past two days, with HD Hyundai Heavy Industries and Samsung Heavy Industries also following suit.

This surge stems from a phone call between Trump and South Korean President Yoon Suk-yeol, where Trump expressed a desire to strengthen cooperation with South Korea, significantly boosting market confidence in the South Korean shipbuilding industry. Investors generally believe that this sector will benefit from the warming of U.S.-South Korea cooperation.

In Australia, the steel company BlueScope Steel, listed in Sydney, saw its stock price rise alongside U.S. steel stocks, climbing over 5% for two consecutive days. Nearly half of the company's revenue comes from North America, primarily through its subsidiary North Star in Ohio. This company is positioned favorably in potential tariff policies, although this may put pressure on the Australian economy.

Indian electronics manufacturers such as Dixon Technologies and Kaynes Technology saw their stock prices surge over 8.5% this Wednesday, with local investors responding positively to the expectation of Trump's victory.

Charu Chanana, chief investment strategist at Saxo Markets, stated that concerns over tariffs and fiscal risks have returned