The prospect of ‘higher for longer’ interest rates and a ‘stronger for longer’ US dollar has hit Asian markets particularly hard, with Japan an extreme example. The only way the dollar will fall meaningfully is if the US economy slows sharply and the Fed cuts rates sooner and at a faster pace than markets expect.
Returning to a supposed Duterte-era deal to preserve peace in the Spratly Islands would be a pragmatic step for the Philippines amid increased militarisation. China should opt for economic investment instead of military assertiveness which only serves to harden negative public opinion among Filipinos.