Asia's economies face sluggish growth and high macro risks, weakened by the influx of easy money and China's slowing growth, according to Nomura.
"Asia overall has become addicted to easy money, and this has weakened economic fundamentals," said Rob Subbaraman, chief economist for Asia ex-Japan at Nomura, in a note. "As a consequence – and quite pervasively across the region – there has been a rapid build-up of private domestic credit, frothy property markets, slowing productivity growth and a sizable shrinkage in current account surpluses (turning to deficits in India, Indonesia and Hong Kong).
In addition, the quantitative-easing fueled capital inflows have reduced the market discipline to pursue structural reforms, he added.
(Read more: Why tapering doesn't mean QE is going away)
Nomura also expects China's recent pickup in economic growth will soon fade, with a resumption of tighter policies and easing potential output set to push economic growth below 7 percent in 2014.
"The recent economic recovery has once again all the hallmarks of low-quality growth: it is driven by shadow financing, heavy industry and investment in property and infrastructure sectors," the report said.