China and the rest of Asia-Pacific will fare better compared to other regions in terms of growth despite the impact of higher US tariffs, Fitch Ratings said in a recent release.

The rating agency expects a weak US dollar and monetary policy loosening among central banks to offset the effects of tempered global demand.

However, Fitch has already observed the impact of trade headwinds on states' fiscal consolidation narratives.

How sovereigns react to dampened global demand and volatility will be pivotal in tempering the effect of tariff challenges on their credit profiles, Fitch said.

While some governments have amplified their spending to anchor household spending, recent violent protests could build pressure, according to Fitch.

The rating agency mostly holds a stable outlook on the region's sovereigns, except for the negative outlook on Thailand due to rising public finance risks amid lingering political uncertainty and growth challenges.