- Asian stocks were mixed following a rally in U.S. equities fueled by speculation that Federal Reserve policy tightening will help combat inflation while not jeopardising economic growth.
- Japan saw gains, helped by a weaker yen, while Hong Kong fell and China fluctuated as traders weighed concerns about US sanctions against Chinese firms.
- The S&P500 and Nasdaq100 contracts sagged after technology stocks powered Wall Street to a strong close, reversing initial declines following the Fed statement.
- The Fed announced that it will double the rate at which it tapers bond purchases to $30bln per month, and that it expects three quarter-point interest-rate increases in 2022, three more in 2023, and two more in 2024. It also warned about the economic risks posed by the omicron virus strain.
- The dollar index recovered from a drop, and treasury yields remained stable. The price of oil increased, and the price of gold increased slightly.
- Bond yields and the Australian currency rose in response to strong employment data.
