Where will QE tapering hit Asia?

ON ASIA PACIFIC

Standard Life Investment's equity director Will Malcolm outlines the pockets of Asia to be worst hit by the Fed's QE tapering plans.

Following the nervousness triggered by the Fed’s quantitative easing (QE) tapering signal earlier in the year and the anxiety over the state of the Chinese economy, the Asian markets have certainly taken some comfort from the delay to the former and the improving data emerging from the latter. That is not to say the eventual withdrawal of US quantitative easing will not be a drag, as the region has clearly enjoyed the benefits of cheap money and strong credit expansion over the past few years. But a more moderate rate of tapering can only help minimise the risk of it becoming a destabili...