Reuters reports Moodys' forecast that suggests the economic recovery will stabilize in Apac, despite risks from the pandemic and secular trends.

Key notes

Economic recovery will stabilize in Apac, despite risks from the pandemic and secular trends gradual recovery in Apac reflects the reopening of economies on increasing vaccination rates, continued fiscal, monetary support.

Growth disparities in Apac will remain as the pandemic, geopolitical tensions, supply chain issues and climate considerations exacerbate differences.

Market implications

Meanwhile, the focus remains on Central Asis and tensions between Russia and Ukraine as well as the Federal Reserve, both of which are weighing on global equity prices.

Asian stock markets largely retreated on Tuesday and are no better off on Wednesday, bleeding red across the board ahead of the Fed.

 Fed fund futures now imply a nearly 85% chance of a 25 basis points increase in the fed funds rate in March, compared with about 54% a month ago, according to the CME Group's Fed Watch tool.