Fitch on Brexit impact in Asia - No direct APAC sovereigns, bank ratings impact

30 June 2016, 06:51
Sherif Hasan

Reuters with the news from Fitch ratings:

  • Brexit has no direct APAC sovereigns, bank ratings impact
  • UK's vote to leave European Union has no immediate direct ratings impact on Asia-Pacific sovereigns or banks
  • Spike in political uncertainty in UK - and resulting effects on investor risk appetite - could pose greatest challenges for Asia in short term
  • Brexit will add to short-term challenges for japan to escape deflation as well as raise risks to export sector
  • Direct impact from UK trade on Asian economies is also likely to be limited
  • Emerging Asia will remain fastest-growing global region
  • China is likely to remain a much more significant driver of economic outcomes in APAC than Brexit
  • US Fed slowing pace of its rate increases, could play a key role in calming markets

A sanguine view from Fitch. In this interconnected world I wonder if they are right to be so.

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