New Delhi, Feb. 25 -- Foreign institutional investors have called it quits on Asian equities after US President Donald Trump's America First policy triggered global trade policy uncertainty. A likely shift in world trade dynamics due to potential reciprocal tariffs could hurt the economic prospects of Asian economies. With a strengthening US dollar, Asian equities are losing their appeal, prompting a sell-off by FIIs.

The new US administration has already enacted additional 10% tariffs on imports from China and 25% tariffs on steel and aluminium, and more such tariffs may be on the cards.

"Though most Asia-Pacific countries other than China will likely be spared significant direct US tariffs being implemented against them, there is a ri...