In its latest report published on Wednesday, Moody’s Investors Service warned that supply strains will worsen for APAC companies amid the energy and raw material cost pressures.

Additional takeaways

Russia-Ukraine crisis and ongoing pandemic will delay supply-side recovery, with all APAC corporate sectors exposed to related cost risks.

All corporate sectors in the region will be exposed to cost risks from supply-side pressures to varying degrees through at least the end of this year.

In addition, pandemic-related mobility restrictions remain strict in parts of the region and are creating new uncertainties.

Market reaction

The worsening Russia-Ukraine crisis is weighing heavily on the market sentiment, with the Asian equities incurring moderate losses while the S&P 500 futures drop 0.09% on the day.