According to Jinshi Data, HSBC Global Research pointed out that with the imminent arrival of tariffs on Asia's exports to the United States, shipments may decline in the coming months and companies may curb investment amid uncertainty.
Tensions in the Middle East could lead to a surge in oil prices, increasing risks for the Asian economy. Asia imports a lot of oil, and rising oil prices will have an adverse impact on the economy.
With the exception of Japan, central banks in Asia are expected to cut interest rates further, helped by a weaker dollar. With external headwinds building, attention is focused on whether Asian shoppers can support growth. Hopes are that household consumer spending can pick up some of the slack.