Asia-Pacific growth to nudge up In 2014 as risks narrow - S&P

SINGAPORE – Asia regional growth will rise fractionally from 5.3% in 2013 to 5.4% next year, while emerging Asia will see growth rise 0.3% to 6.3% over the same period, according to ratings agency Standard and Poor’s.

S&P says China is on track for 7%-7.5% growth in 2014, while Japan's ability to digest a 3% consumption tax hike in April is a key test for Abenomics. But Asia's Tiger economies -- Korea, Hong Kong, Singapore and Taiwan -- look set to outperform in 2014.

Credit conditions for Asia-Pacific issuers have improved in the fourth quarter of 2013, says S&P,  because China's GDP growth has stabilised at about 7.5% and the likelihood of a hard landing has abated in the near term.

“In addition, risks to Asia-Pacific from U.S. Federal Reserve's tapering of quantitative easing (QE) lessened as external imbalances in Asia-Pacific's key deficit countries narrowed as a result of capital outflows in mid-2013.

"However, looking ahead into 2014, we anticipate credit conditions could tighten again and become more volatile as QE tapering affects market interest rates," the agency adds. www.standardandpoors.com