This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-24155790
The article has changed 5 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Asia stock markets rally as Fed refrains from tapering | Asia stock markets rally as Fed refrains from tapering |
| (about 1 hour later) | |
| Asian stocks are rising after the US central bank unexpectedly said it will not scale back its stimulus programme until the economy improves further. | Asian stocks are rising after the US central bank unexpectedly said it will not scale back its stimulus programme until the economy improves further. |
| Japan's Nikkei 225 index rose 0.9%, Hong Kong's Hang Seng jumped 2% and Australia's ASX 200 rose 1.2% to a five-year high after the announcement. | |
| In the US, the three main stock indexes closed at record highs on Wednesday. | In the US, the three main stock indexes closed at record highs on Wednesday. |
| Many investors had speculated that the Federal Reserve would begin reducing its $85bn (£54bn) bond-buying plan. | Many investors had speculated that the Federal Reserve would begin reducing its $85bn (£54bn) bond-buying plan. |
| But in a statement released after its two-day policy meeting, the Fed said there was no fixed timetable for it to begin scaling back - or "tapering" - its stimulus. | |
| The central bank said it was taking a more cautious stance because of an "elevated" unemployment rate and concerns about the US economic recovery. | The central bank said it was taking a more cautious stance because of an "elevated" unemployment rate and concerns about the US economic recovery. |
| "The Committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases," it said. | "The Committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases," it said. |
| The Fed also cut its forecast for growth this year to between 2.0% and 2.3%. That compares to a June estimate of between 2.3% and 2.6%. | The Fed also cut its forecast for growth this year to between 2.0% and 2.3%. That compares to a June estimate of between 2.3% and 2.6%. |
| 'Main beneficiaries' | |
| Analysts said Asian markets would be lifted by the Fed's announcement. | |
| "Emerging markets will be the main beneficiaries, given their sensitivity to the Fed policy, which has been fairly evident," Kelly Teoh from IG Markets said. | |
| Earlier this year, growing expectations of a Fed tapering sparked a sharp sell-off in emerging markets as investors moved their money out of the country. | |
| The Fed's programme, which is also known as quantitative easing, meant that a lot of extra money was invested in Asian financial markets. | |
| Concerns that this would be reduced hit currencies such as the Indian rupee and the Indonesian rupiah particularly hard. | |
| But investors appear to be welcoming the Fed's decision to stand firm on its stimulus. | |
| The Malaysian ringgit and Thai baht have both strengthened by nearly 2%. | |
| The US dollar fell but commodities such as gold and copper have posted strong gains. |