Indonesia, Philippines and India are facing mounting pressure as the Iran-war
oil shock weakens growth, fuels capital outflows and drives currencies lower.
Rising US bond yields are strengthening the dollar, reducing demand for
emerging-market assets and increasing the burden of dollar-denominated debt. The
situation is forcing central banks into a dilemma between raising rates to
defend currencies and supporting slowing domestic economies. HSBC Holdings Plc
economist Frederic Neumann warned the region faces worsening growth and
inflation pressures.
