ASIAN markets buckled badly yesterday after the Federal Reserve heralded an eventual end to free money and China turned the screw on credit even as factory activity in the world's second-largest economy hit a nine-month low.

Shares, currencies and commodities all crumbled as investors rushed to unwind trades in emerging markets. Central banks across the region were busy intervening in foreign exchange markets trying to put out spot fires, but with only limited success.

Among a host of unwanted milestones: Asian stocks outside Japan suffered their biggest daily loss since late 2011, key lending rates in China reached historic highs and India's currency carved out a new record low.

"Kaboom is a better word to describe the market," was the judgement of a trader at an overseas bank in Manila.

MSCI's broadest index of Asia-Pacific shares outside Japan sank nearly 4 percent, marking its biggest daily percentage fall since September 2011.

The falls took the index's year-to-date loss to above 9 percent, much of it suffered in recent weeks as fears of the Fed tapering back its massive stimulus program and further signs of economic weakness in China saw hefty exit of cheap money from emerging markets.

Among the biggest decliners was China, where the CSI 300 of the leading Shanghai and Shenzhen A-shares listings tumbled 3.3 percent.

In Indonesia, the Jakarta Composite Index slumped 3.7 percent as worries about the inflationary impact of a move to raise fuel prices further added to selling pressure, while Indian shares lost nearly 3 percent.

Most other bourses in the region lost more than 2 percent, including Australia, Hong Kong, Singapore, and South Korea.

Japan's Nikkei stock average shed 1.7 percent, a relatively modest move given its recent wild swings.

The initial catalyst for the carnage was Fed Chairman Ben Bernanke, who signaled a likely end to asset buying by the middle of 2014.

That sent 10-year US Treasury yields spiraling to a 15-month peak of 2.38 percent, squeezing investors who had borrowed in US dollars to invest in emerging markets.