Asian stocks were boosted today (September 19th) following an announcement from the US Federal Reserve that it will not yet start winding down its stimulus package.
Speculation that the quantitative easing scheme could be brought to an end sooner rather than later had affected markets earlier in the week, while there is also caution over the potential replacements for Ben Bernanke as the head of the Fed.
But the Nikkei rose by 1.7 per cent today, while Hong Kong's Hang Seng jumped by almost two per cent and the ASX 200 rose 1.2 per cent to reach a five-year high. Indonesian stocks were up by seven per cent, while Philippines shares rose 3.6 per cent and India's benchmark Sensex index jumped by 2.6 per cent.
"Emerging markets will be the main beneficiaries, given their sensitivity to the Fed policy, which has been fairly evident," Kelly Teoh from IG Markets told BBC News.
She added that the sell-off could prove to be "violent" when it comes in the next few weeks.
The Nikkei is enjoying a strong week after rising by 1.8 per cent today and 1.4 per cent yesterday.
Learn about the Asian markets and CFD trading at City Index
GAIN Capital UK Limited (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.