Expert Warns of Supply Shock Impact on Asian Economies

Vishnu Varathan, Head of Macro Research at Mizuho Securities in Singapore, highlighted the extensive impact of sudden supply shocks beyond energy net importers and exporters. According to Jin10, Varathan noted that the repercussions extend deeply into supply chains, with rising prices squeezing profits. Even in countries like Indonesia, increasing oil prices could trigger street protests, a common occurrence. Asia is bearing the brunt of the sharp rise in oil prices, with little room for escape. Given the high exposure of Japan and South Korea to these risks, and Brent crude reaching $107 per barrel, the U.S. dollar is expected to emerge as a stronger currency.