HSBC: Trade Outlook, Intra-Asia Links Improve

HSBC: Trade Outlook, Intra-Asia Links Improve

Trade policy uncertainty has improved in Asia while supply chain reconfiguration continues to drive intra-region connectivity, according to a report by HSBC.

While predictability for the global business outlook remains low amid ongoing geopolitical tensions, there have been signs adaption and stabilization, especially compared to early 2025 when the threat of «Liberation Day» loomed large.

According to the «HSBC Global Trade Pulse» report, 68 percent of Asian respondents feel more certain about the impact of trade policy than they did six months ago. On average, 13 percent expect a negative impact on revenue in the next two years, down from 18 percent half a year ago.

Adapting Through Reconfiguration

One of the ways to ease worries has been through the reconfiguration of supply chains, especially within the region. Southeast Asia was the leading destination for Asian firms to increase reliance at 41 percent, followed by East and North Asia (34 percent), and South Asia (29 percent).

«Our research data suggest that companies in Asia are adapting to the new environment. Though their concerns around revenue have eased slightly, they remain alert to risks. Tariff uncertainty has galvanized Asia, while a growing sense of certainty is enabling companies across the region to make more informed decisions and plan ahead,» commented Aditya Gahlaut, HSBC’s regional head of global trade solutions, Asia.