Asia Pacific markets endured a turbulent period before delivering positive returns as the FTSE Asia Pacific ex-Japan index gained 2.9% in sterling, total return terms. Despite the late volatility, the region remained 2007's best performer, as the FTSE Asia Pacific ex-Japan index soared 37.2% in sterling, total return terms. Equities posted hefty falls in November, as the prospect of further monetary tightening in China dismayed investors.The Shanghai composite index dived 18%, its worst monthly drop since 1994. Hong Kong equities also struggled, amid speculation that the Chinese government was planning to reconsider its previous decision to relax curbs on mainland investment in the territory. A rally in December was driven by expectations for US interest rate cuts and by thriving property and oil stocks.Meanwhile, shares in Pakistan reacted sharply to the assassination of Benazir Bhutto, producing a disappointing end to a year in which they had performed well, despite the growing political uncertainty in the country
