The US Federal Reserve announced a $10bn (£6bn) reduction in its monthly bond purchases from $75bn to $65bn in the second straight month of winding down stimulus efforts.ASIA'S MARKETS ARE RESPONDING:
The central bank had been buying bonds in an effort to keep interest rates low and stimulate growth.
In a statement, the Fed said that "growth in economic activity picked up" since it last met in December.
Although the move was expected, US shares still fell on the news.
GLOBAL STOCK MARKETS WILL GRADUALLY CORRECT AS THE FED REMOVES THE PUNCH BOWL.
MARKETS SHOULD FALL 25-40%, AND GOLD WILL RISE.
AS THE DISMAL CHRISTMAS-THROUGH-1ST QUARTER NUMBERS ROLL IN, THE FED NAY CHANGE COURSE AGAIN...
|Nikkei 225 JAPAN||15,007.06||–376.85||–2.45%||–7.88%|
|Hang Seng HONG KONG||22,035.42||–106.19||–0.48%||–5.20%|
|Shanghai Composite CHINA||2,033.08||–16.83||–0.82%||–3.07%|
|All Ordinaries AUSTRALIA||5,199.36||–41.24||–0.79%||–2.96%|