Le Asian bags fell, trimming the gains of the last two months, which marked the best rally since the beginning of 2012. Investors are concerned about the results of the two-day meeting of the Federal Reserve which hinted that the American Central Bank will cut stimulus to the economy before market forecasts. In particular, the Fed has released statements according to which fiscal policy "is holding back economic growth", but at the same time believes that there are signs of "underlying strength". According to Citigroup, the chances of the Federal Reserve starting to cut the stimulus plan in January have now increased to 45% from the previous 25%. A Bloomberg survey of 17 and 18 October between a panel of economists had predicted the start in March.
On the stock front, Alacer Gold plunged 3,5% in Sydney as prices of the yellow metal fell. Honda Motor fell 1,4% after the world's third-largest automaker reported lower-than-expected second-quarter profits amid slowing demand in Southeast Asia. National Australia Bank lost 2,2% in Sydney on higher spending.
After gaining 3,4% in October, the MSCI Asia Pacific index it fell 0,2% to 143.05 as of 9:29 am in Tokyo, with seven (out of ten) industry groups contracting. Japan's Topix rose 0,1% on the eve of the Bank of Japan meeting. Meanwhile, South Korea's Kospi Index slipped 0,3% and New Zealand's sNZX 50 index lost 0,1% after the Central Bank kept interest rates unchanged at an all-time low.
http://www.bloomberg.com/news/2013-10-31/asian-stocks-pare-monthly-gain-as-fed-fuels-tapering-bets.html
