Asian stocks drop on concerns over Fed

Stock markets across Asia are down today (June 21st) on the back of the news the asset purchasing programme could be wound down by the US Federal Reserve as early as 2014.

Although the Nikkei recorded a weekly increase by rising 1.7 per cent today, most other markets around Asia dropped due to concerns about the Fed's action.

South Korea's main index dropped 1.5 per cent and the Australian ASX was down by 0.4 per cent on the start of the day.

The indexes in both Shanghai and Hong Kong were down more than two per cent early in the day, but were each able to rebound before the close, reports BBC News.

Following the announcement by Fed chairman Ben Bernanke, the Dow Jones share index fell 2.3 per cent yesterday, which was its biggest drop this year.

Mr Bernanke stressed that the asset purchasing programme will only be brought to an end if the body's projections for the economy turn out to be accurate.

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