As data points to a faster Fed taper, Asian markets are mixed.


As data points to a faster Fed taper, Asian markets are mixed.

In jittery trade Thursday, Asian equity markets were mixed as a slew of positive economic data fueled anticipation that the Federal Reserve would withdraw its massive financial support and raise interest rates sooner than expected.

A reduction in jobless claims to a five-decade low, combined with a boom in consumer income and spending, bolstered confidence that the world’s largest economy is on the mend — but put more pressure on the central bank to keep it from overheating.

The figures came as minutes from the Federal Reserve’s November policy meeting revealed that officials were moving closer to unwinding their massive bond-buying program, known as quantitative easing, at a faster pace in order to keep prices from skyrocketing.

Officials agreed to reduce the number of bonds purchased each month starting in November, but “several participants preferred a somewhat faster pace of reductions that would result in an earlier conclusion to net purchases,” according to the minutes.

They went on to say that if inflation continued to rise above levels compatible with the Committee’s objectives, the policy board would be willing to “increase the target range for the federal funds rate sooner than members now expect.”

Meanwhile, San Francisco Fed President Mary Daly, a typically dovish figure, is warming to the concept of a more rapid removal of stimulus. She also stated that she is “leaning towards” an increase in borrowing prices, adding that it “wouldn’t surprise me in the least if it’s one or two by the end of next year.”

The rise in global inflation has prompted numerous central banks to tighten measures put in place at the start of the recession, policies that have been a key driver of the global recovery and market bounce to record or multi-year highs over the last year and a half.

The most recent solid US data “do not speak to an economy in need of the type of support the Fed is presently providing and give weight to fears that the Fed is behind the curve when it comes to monetary policy,” according to CMC Markets’ Michael Hewson.

The S&

However, the Dow dipped marginally, and Asia followed suit.

Tokyo led advances, helped by a strengthening of the dollar against the yen, which benefits exporters; Wellington, Taipei, and Jakarta also gained ground.

Hong Kong, Sydney, Wellington, Taipei, and Mumbai are all places worth visiting. The Washington Newsday Brief News is a daily newspaper published in Washington, D.C.


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