Economist warns of three major headwinds in Asia

The rising omicron cases, slower growth in China, and US Fed policy tightening will be the three major headwinds that Asian countries will face this year, according to Carlos Casanova, senior economist of Asia at Swiss private bank UBP. Casanova told CNBC’s “Squawk Box Asia” that the three headwinds pose a threat for the region as a whole. He added that while Asia’s emerging markets are well positioned, they will be more impacted by these factors, especially if the US Fed moves aggressively on the policy front. The IMF also urged emerging economies to prepare for US interest rate hikes, warning that faster than expected moves could rattle financial markets.