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.
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