Asia Pacific equities performed strongly during the third quarter, with the FTSE All-World Asia Pacific ex-Japan index gaining 14.7% in sterling, total return terms. Several markets in the region advanced into new territory, with indices in China, Hong Kong and South Korea all reaching record highs.Annualised GDP growth in China accelerated from 11.1% in the first quarter to 11.9% in the second quarter, fuelled by a widening trade surplus, buoyant private consumption and galloping investment. September saw the country's interest rates raised to 7.29%, the highest in nine years and the fifth rate hike since March.Inflation remained the biggest concern of the region's other central banks - many raised interest rates at least once over the period as consumer prices accelerated