India’s benchmark Sensex came within sniffling distance of the 60,000 milestone on Thursday as stocks railed to fresh highs after concerns about payment defaults by China’s Evergrande eased. Investors reacted calmly to the US Federal Reserve’s commentary that it will start reversing its stimulus programme in November, throwing none of the tantrums that were visible when the Fed decided to taper its bond buying programme in 2013. The Fed’s abrupt policy shift then sent emerging market stocks and currencies crashing. The market took the US Fed statement on tapering in its stride said Devang Mehta head of Equity advisory at Centrum Booking. Equities in other Asia-Pacific countries were mostly higher with Hong Kong’s Hang Seng index rising 1.19% and the Shanghai Composite Index in China advancing 0.38%.
Fed Chair Jerome Powell said the central bank will start tapering asset purchases and conclude the process around the middle of 2022 if the economy continues to show strength.