Asia stocks rise after Fed announces plans to start tapering bond purchases
SINGAPORE — Shares in Asia-Pacific rose in Thursday trade following the U.S. Federal Reserve’s announcement that it will start tapering the pace of its bond purchases later in November.
Australian stocks rose in trade as the S&P/ASX 200 gained 0.16%.
MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.49% higher.
Markets in Singapore, Malaysia and India were closed on Thursday for a holiday.
Fed announces tapering plans
The Fed announced Wednesday it will begin reducing the pace of monthly bond purchases later this month. The move was in line with market expectations following a series of earlier signals from the U.S. central bank that it would begin winding down a program that accelerated in March 2020 as a response to the Covid pandemic.
The major indexes on Wall Street climbed to new records on Wednesday following the Fed announcement, with the Dow Jones Industrial Average rising 104.95 points to 36,157.58 while the S&P 500 advanced 0.65% to 4,660.57. The Nasdaq Composite jumped 1.04% to 15,811.58.
Oil drops 1%
Oil prices were lower in the morning of Asia trading hours, with international benchmark Brent crude futures falling 1.1% to $81.09 per barrel. U.S. crude futures were down 1.35% at $79.77 per barrel.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.885 after recently falling from levels above 94.