Asia Stocks Rise on US Fed Continuing Stimulus

sian stock markets were mostly higher Monday amid growing expectations that the U.S. Federal Reserve won’t start reducing its monetary stimulus until at least the first quarter of next year.

With uncertainty over the raising of the U.S. borrowing limit temporarily resolved, investors have focused on other matters, notably when the Federal Reserve will reduce its mammoth monetary stimulus that has been a boon for stock markets.

U.S. hiring and durable goods orders for September were weaker than expected, signaling that growth momentum may be slowing and reinforcing expectations that a scaling back of stimulus known as “tapering” won’t begin until next year, Mitul Kotecha of Credit Agricole CIB in Hong Kong said in a market commentary.

Further U.S. data releases this week including September industrial production, retail sales, inflation and consumer confidence as well as a Fed policy meeting could reaffirm that expectation, he said. The Fed is buying $85 billion of U.S. government bonds and other securities with the aim of keeping interest rates low to support economic recovery.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza