Stock markets across Asia are down today (June 21st) on the back of the news the asset purchasing programme could be wound down by the US Federal Reserve as early as 2014.
Although the Nikkei recorded a weekly increase by rising 1.7 per cent today, most other markets around Asia dropped due to concerns about the Fed's action.
South Korea's main index dropped 1.5 per cent and the Australian ASX was down by 0.4 per cent on the start of the day.
The indexes in both Shanghai and Hong Kong were down more than two per cent early in the day, but were each able to rebound before the close, reports BBC News.
Following the announcement by Fed chairman Ben Bernanke, the Dow Jones share index fell 2.3 per cent yesterday, which was its biggest drop this year.
Mr Bernanke stressed that the asset purchasing programme will only be brought to an end if the body's projections for the economy turn out to be accurate.
Learn about the Asian markets and CFD trading at City Index
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.