Fitch Ratings is poised to cut growth estimates for Asian nations as Europe’s debt crisis weighs on the outlook for the world economy.
Quarterly predictions due to be released by the company “shortly” will see growth downgraded for Asian countries, Andrew Colquhoun, the company’s Hong Kong-based head of Asia-Pacific Sovereigns, said in an interview with Bloomberg Television today.
China’s economy, the biggest in Asia, is cooling as demand for exports weakens and the government prolongs a crackdown on property speculation. Growth in overseas shipments in November was the weakest since 2009, excluding seasonal distortions, and the trade surplus shrank from a year earlier, customs data showed on Dec. 10.
Colquhoun didn’t give any specific estimates for growth.
Asian stocks advanced today, snapping a two-day losing streak on the region’s benchmark index, after U.S. consumer confidence topped estimates and European leaders agreed tighter budget rules and to add 200 billion euros ($267 billion) to the euro crisis war chest.
The MSCI Asia Pacific Index gained 1 percent as of 10:03 a.m. in Tokyo. The gauge dropped 2.2 percent last week after Standard & Poor’s said it may cut credit ratings for Germany, France and 13 other euro-area countries amid a deepening debt crisis.