Asian stock markets are strengthening on Thursday after the US Federal Reserve announced yesterday that it will gradually withdraw the emergency aid launched during the recession due to the pandemic.
The Fed announced yesterday that it would begin cutting monthly purchases of bonds and other securities from current levels of $ 120 billion in the coming weeks, at a rate of $ 15 billion a month. If the US Federal Reserve follows this pace, the buying program will come to an end next June, paving the way for a rise in US interest rates in late 2022 or early 2023, analysts say.
The Fed’s announcements have broadly confirmed market estimates that it expects the central bank to begin adjusting its policy to deal with the rapid rise in inflation in recent months.
The Japanese Nikkei 225 index gained 0.9% to 29,794.34 points.
In Hong Kong the Hang Seng is moving with small gains of 0.3%, while in mainland China the Shanghai Composite is up 0.8%.
South Korea’s Kospi gained 0.25%, while in Australia the S & P / ASX 200 gained 0.5%. Indices in Taiwan and Indonesia are also gaining ground, while markets in Singapore and Malaysia remained closed due to a holiday.
Earnings follow another session with historic highs for the Wall Street indices. The S&P 500 gained 0.6% and the Dow Jones rose 0.3% yesterday, completing five consecutive uptrends and climbing to new highs. The Nasdaq climbed 1%, maintaining the positive sign for the eighth consecutive session and also closing at a new high.
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