RBA Signals Possible Rate Implications as Inflation Proves More Persistent 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
U.S. Stocks Slip as Investors Await Fed Rate Decision and Monitor Market Shifts 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Tech Stocks Lift S&P 500 as Fed Rate-Cut Expectations Rise 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
U.S. May Withhold $30.4 Million From Minnesota Over Improper Commercial Driver Licenses 
South Korea Inflation Edges Up in November as Food and Service Costs Climb 
Oil Prices Rise as Geopolitical Tensions and Supply Risks Intensify 
Potentially higher interest costs and volatile foreign exchange rates represent the top credit risks for Asia-Pacific going into 2017. Uncertainty about the policies of the future President-elect Donald Trump's administration is dominating financial markets.
Rising U.S. stock markets, sell-off in global debt markets and the significant strengthening of the U.S. dollar shows that markets are already testing a scenario that incorporates key features of Trump's campaign: fiscal stimulus through increased infrastructure spending and tax cuts; rising inflation; and a tightening monetary policy. The latter two may lead to higher interest rates, S&P Global Ratings reported.
"In Asia-Pacific, investors are in particular concerned about the trade policy the future U.S. government may adopt. Such a "what if" scenario may hurt Asia-Pacific's auto, consumer goods, infrastructure and technology sectors the most," said Terry Chan, Credit Analyst, S&P Global Ratings .
However, economic growth in the region appears to be steadying. Although headline growth rates haven't moved much of late, a reasonably firm pick-up in macro momentum indicators is occurring. Retail sales offer the clearest sign of a pick-up; it is currently above trend in most economies. This stems from rising incomes, which, in turn, is part of the region's evolving growth dynamics, with consumption playing a larger role.
Meanwhile, china's economic slowdown has contributed to difficult operating conditions for industries directly or indirectly tied to that country's growth trajectory. Consequently, among the major sectors, metals and mining have the highest negative ratings outlook bias, followed by oil and gas, real estate development, transportation cyclical, capital goods, and chemicals. Our series of sector articles, including selected corporate sectors by country, discusses this issue.
