Asia Macro Weekly

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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