There could be a silver lining to trade war fears for Asian markets

  • Markets in the region have been unsettled by fears of a potential trade war.
  • While plenty of rhetoric is expected, a trade war is unlikely to erupt, according to Neil Hosie, head of equities for Asia Pacific at Credit Suisse.
  • But that talk may result in a pullback, and create buying opportunities in the market, he said.

Investors have been unsettled by simmering concerns related to a potential trade war, but there could be a silver lining for markets in Asia.

That's because despite the talk, a trade war is unlikely to erupt, while trade-related rhetoric is expected to create buying opportunities, according to Neil Hosie, head of equities for Asia Pacific at Credit Suisse.

"Ultimately, I think we realize that it's not in anybody's interest for this to escalate into a trade war so while we believe there's going to be a lot of rhetoric ... I think sanity is going to prevail," he told CNBC at the Credit Suisse Asian Investment Conference in Hong Kong.

Investors have been worried that tariffs on steel and aluminum imports implemented by the U.S. earlier this month could cause its trading partners to take retaliatory actions and eventually result in a trade war.

"I think if there is volatility and a pullback in the markets, for us, just given where valuations are, that creates a great opportunity to be buying the market," Hosie added.

More trade-related developments are also anticipated in the days ahead, with U.S. President Donald Trump expected to announce additional tariffs on goods from China, according to Reuters.