East Asia's financial markets are vulnerable to a sudden unwinding of yen carry trades and withdrawal of the capital that has lifted many of the region's currencies, according to the Asian Development Bank.
In its latest semi-annual report, the bank said yesterday that political and monetary authorities in the region, which last year witnessed a record $269bn (€196bn, £131bn) in capital inflows, needed to forge ahead with measures to prepare for a sudden reversal.
