Former U.S. President Donald Trump’s victory over Vice President Kamala Harris in this week’s election has raised questions about how Asia will be impacted. “At face value, Trump 2.0 is bad news for Asia, esp[ecially] China,” analysts at Macquarie Research wrote in a Nov. 7 note, given the president-elect’s plans to raise tariffs and cut taxes. “When passed, the [tariffs] will sweep across Asia, particularly China [and] should spike volatility and compress multiples as uncertainty prevails.” Even so, the analysts say the region is “more prepared than in 2016” and investment opportunities remain, especially given the weaker yen and stimulus in China. Market reaction to the election result has been mixed, with India’s Nifty 50 index falling over 1% and Japan’s Nikkei 225 slipping 0.25% on Thursday. In China, meanwhile, the blue-chip CSI 300 index closed over 3% higher, while Hong Kong’s Hang Seng index rose 2% as economic data and hopes of further stimulus boosted stocks. The market moves in Asia come after a surge in U.S. stocks on Wednesday pushed the Dow Jones Industrial Average , S & P 500 and Nasdaq Composite to new all-time highs. The “positive reaction to the stock market,” follows reduced political uncertainties, Tai Hui, APAC chief market strategist at J.P. Morgan Asset Management, said. Sectors to watch Looking ahead, Hui believes “an economic soft landing and steady rate cuts by the Fed[eral Reserve] should be positive for both stocks and bonds, as well as selective alternative assets, such as infrastructure and transportation.” This will bring about “structural shifts in global supply chain … [and] could boost infrastructure spending in ASEAN and South Asia,” he added. Touching on the impact of potential tariffs on imports — especially from China — into the U.S., the strategist believes the “direct earnings impact … is likely to be limited, given [that] more than 85% of MSCI China’s primary revenue comes from mainland China.” “While slower exports would impact domestic investment and consumption indirectly, Beijing’s fiscal and monetary policies could offer some offset. Hence, the possible measures from this week’s [National People’s Congress] meeting could be material in countering investors’ concerns from external factors,” he added. Stocks to play As investors await the outcomes of the closely-watched meeting by China’s top legislature, Macquarie is looking to “domestic pure plays,” such as fast-food restaurant chain Yum China . The analysts also like automotive manufacturer XPeng in the electric vehicle space as the nation’s “energy transition and battery supply chain will likely see multiples compress on rising uncertainty.” Over in Japan, the Australian investment bank is betting on equities expected to benefit from a weaker yen. The currency has fallen versus the dollar following Trump’s win, hitting 154.7 per dollar on Wednesday — its weakest level since July 30. On Thursday it recovered some ground to trade around 153.64. Macquarie’s top Japan picks include test equipment manufacturer Advantest , electronics and electric vehicle manufacturer Mitsubishi Electric and electrical equipment manufacturer Mitsubishi Heavy . It also sees potential in Japanese pharma companies like Daiichi Sankyo and Chugai Pharmaceutical . Elsewhere, the bank still favors tech despite increased potential tariffs on Asian exports, saying top picks TSMC , semiconductor giant SK Hynix , infrastructure service provider Quanta Services and smartphone manufacturer Xiaomi remain good bets. — CNBC’s Lim Hui Jie contributed to this report.