The US poses a bigger danger to Asian markets than China

(Feb 2): Asia’s economies may be increasingly bound to China, but the risks to the region’s markets may be more linked to the US as Chinese policy makers make progress in arresting a record run-up in the country’s debt.

A deeper danger than China for emerging Asian markets is a rapid increase in US interest rates and a surge in the dollar, according to Zhang Zhiming, head of China research at HSBC Holdings. The dollar remains the global financial system’s dominant currency, and record sales of offshore bonds by Asian borrowers have only strengthened its importance for Asia, the argument goes.

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