Furthermore, exports are growing at a slower rate for many countries in the region, especially in China where the government is shifting over to a domestic-driven economy. Meanwhile, U.S. companies are spending less on equipment and technology, weighing on Asian countries that manufacture and export the tools.

“Emerging Asia’s foreign liabilities are now higher as a share of exports than any time in the last 10 years,” Jahangir Aziz, an economist for JPMorgan, said in the article, adding that there is “increased potential for currency mismatch in the private sector. Corporates are directly exposed to FX shocks.”

WisdomTree Asia Local Debt Fund

For more information on Asia, visit our Asia category.

Max Chen contributed to this article.