ASEAN markets jump after surprise Fed decision

BernankeSoutheast Asian stocks and currencies saw robust gains as investors returned to emerging markets after the US Federal Reserve surprisingly announced that there will be no change in stimulus measures.

Indonesian equities gained 4.5 per cent, while the Philippines added 2.9 per cent, Thai stocks opened up 3.31 per cent at the start of trade on September 19, Bursa Malaysia’s index rose around 6 per cent, and Singapore’s STI index around 1,6 per cent.

The Fed’s decision is a green light for global fund managers, after fears of a change in US monetary policy resulted in a volatile summer for Asia. Indonesia had been hit especially hard because of worries over their slowing economies and trade imbalances just as the fear of a rollback of US stimulus efforts, which had supported these markets for years, prompted substantial outflows.

Southeast Asian currencies also rallied, with Thailand’s baht rising as much as 2.5 per cent against the greenback, while Indonesia’s rupiah rose 2.4 per cent.

Fed chairman Ben Bernanke said that the unemployment rate has not improved enough to start tapering the Fed stimulus, and central bank policymakers were not confident enough yet that the economy could handle a reduction.

Financial markets had expected the Fed to announce it would begin tapering its monthly $85 billion in bond purchases by about $15 billion a month.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

Southeast Asian stocks and currencies saw robust gains as investors returned to emerging markets after the US Federal Reserve surprisingly announced that there will be no change in stimulus measures. Indonesian equities gained 4.5 per cent, while the Philippines added 2.9 per cent, Thai stocks opened up 3.31 per cent at the start of trade on September 19, Bursa Malaysia's index rose around 6 per cent, and Singapore's STI index around 1,6 per cent. The Fed's decision is a green light for global fund managers, after fears of a change in US monetary policy resulted in a volatile summer for...

BernankeSoutheast Asian stocks and currencies saw robust gains as investors returned to emerging markets after the US Federal Reserve surprisingly announced that there will be no change in stimulus measures.

Indonesian equities gained 4.5 per cent, while the Philippines added 2.9 per cent, Thai stocks opened up 3.31 per cent at the start of trade on September 19, Bursa Malaysia’s index rose around 6 per cent, and Singapore’s STI index around 1,6 per cent.

The Fed’s decision is a green light for global fund managers, after fears of a change in US monetary policy resulted in a volatile summer for Asia. Indonesia had been hit especially hard because of worries over their slowing economies and trade imbalances just as the fear of a rollback of US stimulus efforts, which had supported these markets for years, prompted substantial outflows.

Southeast Asian currencies also rallied, with Thailand’s baht rising as much as 2.5 per cent against the greenback, while Indonesia’s rupiah rose 2.4 per cent.

Fed chairman Ben Bernanke said that the unemployment rate has not improved enough to start tapering the Fed stimulus, and central bank policymakers were not confident enough yet that the economy could handle a reduction.

Financial markets had expected the Fed to announce it would begin tapering its monthly $85 billion in bond purchases by about $15 billion a month.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

NO COMMENTS

Leave a Reply