As talks about an imminent tapering off of the stimulus policy of the Federal Reserve faded, Asian stocks, buoyed by the news rose on Monday. Hong Kong’s Hang Seng increased by 0.9%, whereas South Korea’s Kospi rose by 1%. The Australian S&P too advanced 0.3% and Japan’s Nikkei registered a boost of 0.3%.
US Economy performance
On the other side of the globe, in the US there were raised eyebrows over the strength of recovery of the housing market in the nation, which is a key factor determining the overall economic growth. Friday data showed a decrease in new home sales which led to speculation that the Fed might not withdraw its stimulus policy very soon.
The recent boost in the economy prompted many to think that the Fed might gradually start to cut back on its bond-buying policy. However, analysts say that the current plunge in home sales has pushed them to rethink on their assumption.