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Asian markets witness pull back after Fed pledge to keep rates low

10 Aug 2011 Evaluate

After witnessing a deep cut in six straight sessions, Asian markets finally gets sigh of relief as pull back rally witnessed in all the Asian equity indices barring Straits Times on Wednesday after the US Federal Reserve pledged to keep interest rates near zero through the middle of 2013. Moreover traders were hoping that another round of fiscal stimulus could be on the way too aided the sentiments. But, the investors remained wary about the implication of the Fed’s move -- that it expects the US economy to remain weak far longer than previously forecast -- and this supported demand for safe havens such as gold and the Swiss franc. Meanwhile, South Korean index closed slightly higher in the trade as investors bought battered stocks after recent selloffs, but gains were limited by continued foreign selling however, Straits times that escaped the massacre in last session has witnessed some correction in the trade today.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2,549.18

23.11

0.91

Hang Seng

19,783.67

452.97

2.34

Jakarta Composite

3,863.58

128.46

3.44

KLSE Composite

1,480.52

8.38

0.57

Nikkei 225

9,038.74

94.26

1.05

Straits Times

2,821.09

-62.91

-2.18

Seoul Composite

1,806.24

4.89

0.27

Taiwan Weighted

7,736.32

243.20

3.25

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