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Quarter-End Insights

Asia: Fed Fears, China Liquidity Squeeze Add to Investor Woes in 2Q

Amid bleak economic signs and a worsening liquidity crunch in China, investors' risk appetite took a further blow in the second quarter.

What seemed to be a promising year for equity investors at the onset is now turning out to be a difficult one--at the end of the second quarter. Almost all Asian bourses have headed further into the negative zone.

Japan's Nikkei is the only market in the region that has managed to stay afloat. The Nikkei 225 average is up 2.72% over the April-June period, while on a year-to-date basis it has gained a whopping 20.08%. Much of this performance is attributable to the weakness of the Japanese currency.