Here's what Asia should brace itself for this year

Possibly affecting domestic demand.

It has been noted that the level of external uncertainty looks set to remain relatively high in 2016, with headwinds coming from concerns over moderating growth rates on the Mainland, among others.

According to a research note from Hang Seng Bank, other headwinds mentioned are interest rate normalisation in the US, the increase in global financial market volatility and the emergence of demand-side factors pushing down crude oil prices.

In addition, the report said the adverse spillover effects from external economic uncertainties may be greater than expected and this will weigh on domestic demand, which has been a good driver of growth since the end of the global financial crisis in 2009.

With mounting external uncertainties, the turbulence experienced in January could be a signal that 2016 might be worse than 2015, increasing the downside risk for Hang Seng Bank's 2016 forecast, which currently stands at 2.4%.