Asian stocks rise with bond yields as Fed outcome boosts risk sentiment

Asian stocks rise with bond yields as Fed outcome boosts risk sentiment

Bond yields rose while the dollar stabilized after slumping overnight as havens fell out of favour. Gold gained along with crude oil.







Reuters









December 16, 2021 / 07:46 AM IST





Asian stocks followed Wall Street higher on Thursday after the U.S. Federal Reserve said it would end bond-buying stimulus in March to set up three interest rate increases next year to tackle heated inflation.

Bond yields rose while the dollar stabilized after slumping overnight as havens fell out of favour. Gold gained along with crude oil.

"The economy no longer needs increasing amounts of policy support," Fed Chair Jerome Powell said in a news conference after the conclusion of the two-day policy meeting.

Japan’s Nikkei climbed 1.67% and touched a three-week intraday high, while Taiwan’s benchmark gained 0.62%.

Mainland China shares slipped though, with an index of blue chips losing 0.12%.

MSCI’s broadest index of Asia-Pacific shares added 0.26%.

U.S. e-mini futures pointed to a 0.12% rise for the S&P 500, after it rallied 1.63% overnight to finish near a record high.

The Federal Open Market Committee (FOMC) laid out a scenario in which the COVID-19 pandemic, despite the emergence of the Omicron variant, gives way to