Asian equity markets followed their Wall Street counterparts lower on Thursday amid speculation that the Federal Reserve could pull back on its stimulus program soon.
U.S stocks dropped sharply for a second session overnight, with the S&P 500 and Nasdaq seeing their biggest losses in nearly five weeks, after Washington's budget deal increased expectations that the Federal Open Market Committee (FOMC) will take action to curb bond purchases at next week's policy meeting.
Meanwhile, Dow stocks futures fell 40 points in afternoon trade. "Reports that Stanley Fischer potentially being nominated for the Vice-chair of the Fed could be having an impact, given he has said before that he opposes adjusting the Fed's forward guidance with regards to raising the threshold for putting up the funds rate," said Chris Weston, market strategist at IG.
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