Asian stocks were seen traded in red on Thursday as the minutes of the Federal Reserve Open Market Committee (FOMC) released showed that the policymakers’ are supporting tapering its stimulus program this year. However, investors are still uncertain as to when the cuts will begin to commence.
Asian Stocks – Fed to Taper This Year
With the world’s largest economy showing signs of improvement, the Central Bank policymakers are convinced on scaling back the its $85 million monthly asset-purchasing program.
On Wednesday , the widely awaited FOMC minutes from the July meeting did not show when exactly the scaling back of the stimulus program would begin , adding “moderate the pace of its securities purchases later this year, if economic conditions improved broadly as expected.”
The minutes also highlighted that the Fed committee members did not agree to the idea of reducing the 6.5% unemployment rate target the Fed policymakers set.
The minutes showed signs of immediate selling in both bonds and stocks on Wall Street.
The benchmark index Nikkei 225 dropped 0.40% to 13,365.17 points, after staying above the contraction level in the previous session. While the Tokyo’s broader Topix index edged 0.2% lower to 1,119.56 points, extending a series of losses since August 8.
In China, equities showed a fall as well as Hong Kong’s main index Hang Seng edging down 0.59% to 21,683.00 points. Natural gas producer and suppliers in China and Hong Kong declined as it had to clear off 2.9%.
The Chinese mainland Shanghai Composite was seen flat as it slightly edged up 0.04% to 2,073.78 points. Stocks in China have been ignored the preliminary HSBC showed that the manufacturing sector showed a strong recovery in August.
The South Korean Kospi had a massive drop of 0.98% to 1,849.10 points, while the Australian S&P/ASX 200 index wrote off 0.50% to 5,070.50 points.
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