* Asian stock markets : tmsnrt.rs/2zpUAr4

* Fed projects two rate rises in 2023, talks tapering

* Markets imply risk of first hike by end of 2022

* Bonds sell off hard, dollar surges, gold slides

SYDNEY, June 17 (Reuters) – Asian markets looked set for a rough ride on Thursday after the U.S. Federal Reserve stunned investors by signalling it might raise interest rates at a much faster pace than assumed, sending yields and the dollar sharply higher.

The dollar boasted its strongest single day gain in 15 months as 10-year U.S. Treasury yields jumped by the most since early March.

The initial fallout in equities was not as bad with S&P 500 futures down just 0.2% in early Asian trade, while Nasdaq futures were off 0.3%. Nikkei futures were also down a modest 0.3%.

Emerging markets might not fare as well as they are particularly vulnerable to the chance of early U.S. rate hikes to contain inflation, which could suck funds out of riskier assets.

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