Asia Stocks Trade Lower as Fed Vows to Continue Using QE and Keep Policy Rate near Zero

Stock markets in Asia were mixed in the morning session on Thursday as investors are focusing on the FDA to approve Moderna’s vaccine. Meanwhile, the Fed announced its conclusion to keep its interest rate unchanged, vowing to continue the QE.

 

As of 9:41 local time in Thailand on Thursday, Nikkei fell 0.02%, SSEC dropped 0.33%, HSI decreased 0.13%, ASX200 gained 0.86% and Kospi fell 0.96%.

 

Yesterday, FDA’s scientists endorsed Moderna’s coronavirus vaccine, saying that the two-dose vaccine “was highly effective” in preventing symptomatic Covid-19 from occurring “at least 14 days after the receipt of the second dose.”

The market has been anticipated that the FDA would approve Moderna’s vaccine by Friday just like when it approved Pfizer’s vaccine.

 

In the meantime, the U.S. Federal Reserve (Fed) released the statement of its two-day meeting, saying that the Fed will maintain benchmark interest rates near zero and will continue to buy at least $120 billion of bonds each month.