Asianfin -- Donald Trump’s election win is reshaping near-term investment flows, with investors increasingly favoring India and Japan as tariff risks continue to overshadow Chinese assets.

Market experts anticipate a shift in funds towards these two Asian economies as Trump’s anti-China stance raises concerns. The president-elect had previously threatened to impose tariffs as high as 60% on Chinese goods, prompting many to reassess their exposure to China. Morgan Stanley has reaffirmed its preference for Indian and Japanese stocks over Chinese equities.

India, seen as an alternative manufacturing hub to China, is attracting investors due to its relatively insulated economy, which is driven by domestic demand. Meanwhile, Japanese stocks stand to benefit from Trump’s anticipated economic policies, which are expected to maintain high interest rates, strengthen the dollar, and weaken the yen — all of which could boost Japan’s export-driven economy.