BEIJING (AP) — Asian businesspeople and analysts expressed hope Wednesday that U.S. President-elect Barack Obama can tackle the financial crisis but anxiety over whether Washington will embrace more protectionist trade measures.
"The financial crisis has a great impact on the world. If Obama can reverse the tide, then certainly it's good," said Liao Yi, deputy general manager of CHiNT Electronics Group, one of China's biggest producers of power-transmission equipment.
Japanese investors are hopeful that Democrat Obama's win, as well as his party's bigger majorities in the U.S. Congress, will help speed along further measures to lift the U.S. out of its economic woes, said Toshikazu Horiuchi, equity strategist at Cosmo Securities in Tokyo.
"There are expectations now for prompt economic stimulus measures," he said.
Most Asian stock markets rose Wednesday, partly on relief that the next U.S. leader was chosen, lifting months of uncertainty. Japan's Nikkei index jumped 4.5 percent to 9,521.24 and Hong Kong's benchmark rose 3.2 percent to 14,840.16.
Still, Kazuo Mizuno, chief economist at Mitsubishi UFJ Securities Co. in Tokyo, cautioned that a new president could not deliver a quick fix for U.S. economic problems, which are dragging on global growth. He said the United States will likely need foreign financing — from Japan, China and the Middle East — to pay for bailouts of financial firms saddled with bad debts and other measures.
"Changing the president is not going to be enough to save the American economy," Mizuno said. "Even the president is not going to be able to change America without help from the world."
Many expressed unease about Obama's pledges to vigorously enforce trade laws and criticism of a pending trade pact with South Korea that he says fails to address an imbalance in auto shipments. The Democrats, traditionally viewed as more protectionist on trade than Republicans, now control the presidency and Congress.
Obama has said he is in favor of free trade agreements if they benefit the United States. He has criticized the one with South Korea, saying it does not adequately address an imbalance in auto trade. South Korean automakers sold 772,482 vehicles in the United States in 2007, while the U.S. sold 6,235 in South Korea, according to industry statistics.
"He appears to be a protectionist," said Chea Mony, president of the Free Trade Union of Workers in Cambodia, which has an export-driven textile industry. "I am quite concerned about that because most of our clothing products are exported to America."
In an Oct. 24 letter to the U.S. National Council of Textile Organizations, Obama pledged "strong enforcement" of trade remedy laws, which can include added tariffs on imports that are deemed to hurt American businesses. Obama said he would include labor and environmental standards in free trade agreements — a measure that many in Asia view as a possible pretext to shield U.S. companies from foreign competition.
Obama also has said he would pressure China to end what he calls the manipulation of its exchange-rate system. Washington and other trading partners say Beijing's currency, the yuan, is kept undervalued, giving its exporters an unfair price advantage and adding to China's multibillion-dollar trade surplus.
Frank Gong, a Hong Kong-based managing director for JP Morgan Securities, warned of possible conflict if Democrats in Congress try to support American businesses and workers by curbing Asian imports.
"That could mean trade friction and the risk of rising protectionism," Gong said.
Analysts said, however, that despite Obama's pre-election comments, he was likely to follow the example of previous U.S. presidents and take a moderate line in office to preserve important trade relations with Asia.
"I'm not worried about what might happen after Obama's win," said Qiang Yongchang, a professor at the Economy Institute at Shanghai's Fudan University. "He may have talked tough, but based on past experience, that's just a tool to win over voters. Every candidate does that."
Chinese expect that the change Obama speaks of might involve some shift of policy on financial markets, and that would not necessarily hurt trade, Qiang said.
"I think Mr. Obama will soon find out how important China's economy is, not just for the U.S. but for all the world," Qiang said. "Obama will need us, as the U.S. needs China."
"The financial crisis has a great impact on the world. If Obama can reverse the tide, then certainly it's good," said Liao Yi, deputy general manager of CHiNT Electronics Group, one of China's biggest producers of power-transmission equipment.
Japanese investors are hopeful that Democrat Obama's win, as well as his party's bigger majorities in the U.S. Congress, will help speed along further measures to lift the U.S. out of its economic woes, said Toshikazu Horiuchi, equity strategist at Cosmo Securities in Tokyo.
"There are expectations now for prompt economic stimulus measures," he said.
Most Asian stock markets rose Wednesday, partly on relief that the next U.S. leader was chosen, lifting months of uncertainty. Japan's Nikkei index jumped 4.5 percent to 9,521.24 and Hong Kong's benchmark rose 3.2 percent to 14,840.16.
Still, Kazuo Mizuno, chief economist at Mitsubishi UFJ Securities Co. in Tokyo, cautioned that a new president could not deliver a quick fix for U.S. economic problems, which are dragging on global growth. He said the United States will likely need foreign financing — from Japan, China and the Middle East — to pay for bailouts of financial firms saddled with bad debts and other measures.
"Changing the president is not going to be enough to save the American economy," Mizuno said. "Even the president is not going to be able to change America without help from the world."
Many expressed unease about Obama's pledges to vigorously enforce trade laws and criticism of a pending trade pact with South Korea that he says fails to address an imbalance in auto shipments. The Democrats, traditionally viewed as more protectionist on trade than Republicans, now control the presidency and Congress.
Obama has said he is in favor of free trade agreements if they benefit the United States. He has criticized the one with South Korea, saying it does not adequately address an imbalance in auto trade. South Korean automakers sold 772,482 vehicles in the United States in 2007, while the U.S. sold 6,235 in South Korea, according to industry statistics.
"He appears to be a protectionist," said Chea Mony, president of the Free Trade Union of Workers in Cambodia, which has an export-driven textile industry. "I am quite concerned about that because most of our clothing products are exported to America."
In an Oct. 24 letter to the U.S. National Council of Textile Organizations, Obama pledged "strong enforcement" of trade remedy laws, which can include added tariffs on imports that are deemed to hurt American businesses. Obama said he would include labor and environmental standards in free trade agreements — a measure that many in Asia view as a possible pretext to shield U.S. companies from foreign competition.
Obama also has said he would pressure China to end what he calls the manipulation of its exchange-rate system. Washington and other trading partners say Beijing's currency, the yuan, is kept undervalued, giving its exporters an unfair price advantage and adding to China's multibillion-dollar trade surplus.
Frank Gong, a Hong Kong-based managing director for JP Morgan Securities, warned of possible conflict if Democrats in Congress try to support American businesses and workers by curbing Asian imports.
"That could mean trade friction and the risk of rising protectionism," Gong said.
Analysts said, however, that despite Obama's pre-election comments, he was likely to follow the example of previous U.S. presidents and take a moderate line in office to preserve important trade relations with Asia.
"I'm not worried about what might happen after Obama's win," said Qiang Yongchang, a professor at the Economy Institute at Shanghai's Fudan University. "He may have talked tough, but based on past experience, that's just a tool to win over voters. Every candidate does that."
Chinese expect that the change Obama speaks of might involve some shift of policy on financial markets, and that would not necessarily hurt trade, Qiang said.
"I think Mr. Obama will soon find out how important China's economy is, not just for the U.S. but for all the world," Qiang said. "Obama will need us, as the U.S. needs China."
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