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Stuck between two giants, Asian investors beware

Regional economy feels pull of both China and US Fed

| China

China drives growth. The U.S. Federal Reserve determines interest rates. That sets us up for tensions that few investors fully appreciate. No surprise: Both are spurring regional economies at the moment. China's economy has soared over the past year, driving trade and lifting growth across much of Asia. The Fed has gingerly raised rates at the same time, but hardly enough to discourage funding for Asian businesses and households. It may not always be so. At its Sept. 20 policy meeting, the Fed held rates but hinted at increases ahead. And that poses risks to the region.

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