HSBC sees stronger dollar, US rate hikes working against Asia

Singapore

DESPITE recent indicators that suggest an improving economic landscape in Asia, HSBC continues to hold a pessimistic outlook for the region largely due to a strengthening dollar and Federal Reserve rate hikes.

HSBC's co-head of Asian economic research Frederic Neumann said Asia is facing a lot of headwinds in 2017, as the external environment is becoming more challenging. "We still haven't seen a convincing rebound in exports for most of the region," he said.

Although there have been signs that exports picked up in some economies, new export orders and imports by the Western world from Asia seem to be "structurally impaired". Compounding the drag in exports are the protectionist tendencies in the US, which come at a very challe…