Asian markets accept that free trade with the US is a thing of the past, says UOBAM

SINGAPORE, July 23, 2025 /PRNewswire/ -- Asian markets have continued to demonstrate resilience, even in the face of US tariffs. In a Special Report published today, UOB Asset Management (UOBAM) assesses that Asian markets could even rally if negotiations ahead of the new 1 August deadline result in improved rates relative to those announced in April. The implication here is that investors no longer expect a return to previous trading arrangements but are nevertheless sanguine about the region's ability to withstand moderate tariffs.

Colin Ng, UOBAM's Head of Asian Equities, explains, "The majority of Asian economies are likely to recover relatively quickly from the direct impact of US tariffs. A slowdown in exports to the US can be offset by trading with other countries, and in particular, with their Asian neighbours"

"This is because, on the one hand, more and more Asian companies are building globally recognisable brands, and on the other, the Asian consumer base is now large and affluent enough to absorb these products. That is why ASEAN has taken over from the US as China's biggest trading partner."

The UOBAM Special Report, entitled "Will US tariffs detail Asia's growth?" looks at the short- and longer-term implications of US tariffs on seven markets in Asia, including the big exporters such as Korea, Taiwan region and Singapore as well as those more domestically-focused such as Malaysia and Indonesia.

Ng warns that the risk to Asian economies comes instead from the indirect impact of US tariffs, that is. if the tariffs result in a global growth slowdown or a recession. This is turn would cause the global demand for Asian exports to shrink. However, based on the economic data released so far, Ng says this is not UOBAM's base case.

Read the full report:

About UOB Asset Management

UOB Asset Management Ltd (UOBAM) is a wholly-owned subsidiary of United Overseas Bank Limited. Established in 1986, UOBAM has nearly 40 years of experience in managing collective investment schemes and discretionary funds in Singapore, making us among the largest unit trust managers by assets under management. As of 30 June 2025, we manage 65 unit trusts in Singapore and together with our subsidiaries, oversees S$37.6 billion in clients' assets.

Headquartered in Singapore, UOBAM has a strong presence across Asia, with business and investment offices in Brunei, Indonesia, Japan, Malaysia, Thailand and Vietnam. Our network includes UOB Islamic Asset Management Sdn Bhd in Malaysia, a joint venture with Ping An Fund Management Company Limited and strategic alliances with partners such as Wellington Management Singapore.

UOBAM is one of the region's most awarded asset managers, with over 380 awards won. In 2025, we were recognised as the Best Regional Asset Management Company by the Asia Asset Management and previously named Best Asset Management House in Asia – 20 Years in 2023. Our digital innovation has also earned top honours, including Best Digital Wealth Management in Asia[1] and Best Robo Advisory Initiative[2] for 3 consecutive years as of 2024.

As a leader in sustainable investing, UOBAM was awarded Best application of ESG in ASEAN[3] (2023) and has received multiple sustainability accolades in Indonesia and Thailand. Our artificial intelligence capabilities were also recognised with the Most Innovative Application of Artificial Intelligence (ASEAN) for 2 consecutive years[4].

Connect with us: LinkedIn | Facebook

[1] Awarded by Asia Asset Management

[2] Awarded by The Digital Banker for the Global Retail Banking Innovations Award

[3] Awarded by Asia Asset Management

[4] As of 2025, by Asia Asset Management