Asian inflation is rising due to high oil prices caused by the Strait of Hormuz closure, but regional growth is being sustained by a semiconductor supercycle and record-loose financial conditions.
Key Takeaways
- 1.High oil prices (>$100/bbl) resulting from the 11-week closure of the Strait of Hormuz are driving up inflation across Asian economies, though subsidies in Indonesia and Malaysia are providing some temporary relief.
- 2.Regional growth remains resilient due to the AI-related semiconductor investment boom, with South Korea and Taiwan reporting double-digit export growth.
- 3.Financial conditions in Asia have loosened to unprecedented levels, primarily driven by equity markets hitting all-time highs, which helps offset the energy price shock.
Table of Contents
- Key view
- Upcoming events & data
- Data calendar
- Forecasts
- Central bank meetings
- Recent insights
- Acronyms & abbreviations
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Authors
Khoon GohKrystal Tan
Securities
US Hyperscalers
Themes
AI-related investment boom (Semiconductor Supercycle)Energy Shock ResilienceMonetary Policy Tightening
Regions
Asia PacificChinaIndonesiaPhilippines