>> A double whammy for Asian markets. China's economic slump all ready has investors worried but now the prospect of more aggressive US interest rates hypes is sending investors scouring for cover. Asia's Benchmark stock index looks set to post losses for the month of May, while recently strong currencies like the Malaysian Ringgit has suddenly headed due south.
>> I'm Reuters Tara Joseph in Hong Kong about $3.2 billion float out of Asian stock markets from Seoul to Sydney just in the first three weeks of May alone. Now investors expect the fed to go ahead in raised rates as early as next month. And that could lead to another so called fed taper tantrum, where investors take their money out of emerging markets, and pour it back into the United States.
>> The turnaround in Asia markets comes just as some countries like India had become bright spots in murky times for emerging investors. While other regions like Latin America struggle with steep recessions, but Asian debts both government and corporate are piling up too. And the US rate rise means the cost of borrowing could also rise, a worrying concept for nervous investors.
China's economic slow down has halted demand for everything from commodities to luxury retail. Now it's the Federal Reserve hurting confidence in markets here sending signals that it could be a bumpy summer ahead.