Asia stocks struggle following US Fed decision
A photo from the United Nations-African Union Mission in Darfur shows one of its peacekeepers in abandoned Labado village, East Darfur on November 19, 2013 (AFP Photo/Albert Gonzalez Farran)Asian stocks were down Thursday following the United States central bank\’s decision to further trim its stimulus of the world\’s biggest economy.
Japan\’s Nikkei 225 index dove 3.2 percent by midday. Other Asian stock indexes were also lower, including Hong Kong\’s Hang Seng, which fell 1.4 percent.
On Wednesday, the U.S. Federal Reserve said it will trim another $10 billion from its bond buying program next month, raising fresh concerns about the stability of emerging markets.
The policy, which is on pace to end altogether by the end of the year, was meant to pump more money into the U.S. economy, boost job growth and keep interest rates low.
However, as the program tapers and interests rates edge higher, analysts worry investors will pull their money from emerging economies and seek higher returns in the U.S.
Source: VOA and agencies
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