Stocks in Asia climbed on Monday, with the exception of Shanghai, after former U.S. Treasury Secretary Lawrence Summers withdrew his bid to head the Federal Reserve.
Asian investors took cheer from Summers departure as he was believed to have a tougher line on the future of U.S. stimulus than other candidates.
A scaling back of the Fed’s monthly asset purchases by more than $10 billion would have a negative impact on emerging markets in Asia, analysts warn. Markets will now be watching the Federal Reserve’s policy meeting this week closely, in anticipation of the U.S. central bank downsizing its stimulus program.
[CBNC]