Nomura Says A Victory for Joe Biden in the November Presidential Elections could be Positive for Asia.

According to Rob Subbaraman, the Head of Global Macro Research at Nomura, if the Democratic presidential candidate wins the coming elections which will be taking place in November, it could be of great benefit for Asia.

He told CNBC’s Street Sign Asia on Tuesday “For Asia specifically if Biden wins, I think it will be actually positive,”

He said “A Biden presidency, if he were to win, will result in more certain policymaking, foreign policymaking… That’s been very lacking and I think there’ll be more coalition-building. I think that it will be more generally favorable for the region.”

For Subbaraman, though a win from Biden could be favorable for Asia, he still expects that he would be tough on China concerning other issues that are beyond trade. He claimed that the Democratic presidential nominee would be positive for the rest of the world.

Under the administration of Donald Trump, who happens to be the incumbent U.S President, there have been a lot of tensions and hassle between the U.S and China. From issues concerning trade to issues of national security and more.

In the process of all these, some Chinese companies have been dragged in, as the issues go back and forth, companies like the Chinese communications giants Huawei, Bytedance, and Tencent. At the moment, no one is certain about the extent to which what seems like a “trade war” between the U.S and China would go.

Subbaraman revealed that the U.S market could suffer a hit under the democratic presidential nominee. He said “I think there will be a lot more focus on income redistribution in the U.S., which will not be good for U.S. markets,” 

He added that Biden could focus on higher taxes and would likely be tougher on tech companies, and this would be more negative for markets stateside relative to elsewhere.