Higher interest rates and weaker demand strain corporate balance sheets across the region.
Corporate insolvencies across Asia-Pacific are rising as tighter credit conditions, elevated interest rates and slowing demand converge to pressure companies already weakened by years of economic shocks. The increase comes despite broader global resilience and stands in contrast to Gulf economies, where diversification has lifted non-oil activity to about 70% of GDP.
Across the region, insolvencies climbed 12% and investor sentiment has also deteriorated, with Asian bonds seeing $5.48 billion in outflows in September, the largest monthly withdrawal in more than three years, reflecting concerns over economic slowdown and political…