Asia looks vulnerable as Fed prepares to change its tune

Asia-Pacific equity markets have recovered by about 8% from their nadir in February, according to the MSCI Emerging Markets Asia Index. That mirrors a global trend in which equity markets have risen strongly, especially in the U.S., while bond yields have remained low and market volatility measures have dropped to levels last seen in 2007. Such buoyancy in financial markets was scarcely imaginable earlier this year, when investors worldwide feared the consequences of moves by the U.S. Federal Reserve to scale back its quantitative easing program….“more:”