Fed’s Decision Will Weigh on Asia Stocks and Help Bond Rally, Strategists Say

  • Asia assets will track US though weak dollar helps: Betashares
  • Saxo Capital says Treasuries are a buy, especially front end
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The Federal Reserve’s decision to raise interest rates once again while keeping its year-end forecast unchanged is set to keep Asian stocks under pressure and help government bonds rally, according to regional-focused investors and strategists.

A weaker dollar will help bolster emerging-market currencies and may also provide some relief for Asian equity markets, which will otherwise mirror weaker risk appetite seen in the US, the analysts said in comments to Bloomberg.