Fed news boosts Asian markets
Asian stock markets were up on the news the stimulus package remains in place.
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.
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