Asian markets veer towards 'perfect storm' after QE3 revelation

Currencies sharply dropped vs green back.

According to BBVA, it was a perfect storm for Asian markets, with news of the Fed’s FOMC statement on QE3 tapering, a negative lead from Wall Street, and a weaker-than-expected Flash HSBC PMI reading for China conspiring to send share prices and currencies sharply lower. 

The most notable currency moves were the AUD, which depreciated by -1.2% to 0.92 against the USD (its lowest since September 2010), and the JPY resuming its depreciating trend, to stand at 98.0 per USD; the INR has been trading near record lows at 59.8 per USD.

Here's more from BBVA:

Throughout the recent bout of currency weakness, the CNY, in contrast, has stood firm at 6.13 per USD.

Stock market declines today were led by Indonesia (-3.7%), Hong Kong (-2.9%) and the Philippines (-2.9%). Currency weakness and stock market volatility could be a harbinger of things to come for the remainder of the year, as pressures on EM markets continue on expectations of Fed tapering.