MANILA, Nov. 25 (Xinhua) -- Aggressive monetary tightening in advanced economies has pushed up bond yields and worsened the downturn of financial conditions in emerging East Asia, according to a report by the Asian Development Bank (ADB) released on Friday.

The latest Asia Bond Monitor said regional currencies fell against the U.S. dollar, equities dropped, and risk premiums widened between Aug. 31 and Nov. 4, portfolio outflows were also seen in most regional bond markets.

The report added that global inflation and economic fallout from the Russia-Ukraine conflict continued to threaten the region's short-term prospects.

"Financial conditions in emerging East Asia weakened at a faster pace in September and October than in the first eight months of 2022 due to the aggressive tightening by the U.S. Federal Reserve," ADB Chief Economist Albert Park said. However, he added that the region "remains largely resilient so far, despite various headwinds."

The report also said the local currency bond issuance in emerging East Asia contracted 1.1 percent from the previous quarter to 2.2 trillion U.S. dollars in the third quarter, amid subdued investment sentiment. Local currency bonds outstanding grew 2.3 percent to 22 trillion U.S. dollars. Enditem

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