Asian markets have responded to the bearish sentiment in the U.S & Europe by posting significant losses of its own. Asian stocks fell, with the regional benchmark index extending its second weekly loss, as improving U.S. economic data boosted bets the Federal Reserve will reduce stimulus as early as next week. However, Japan’s Topix index has risen 44 percent this year – the most impressive rise amongst major developed markets – amid unprecedented stimulus by the Bank of Japan in support of Prime Minister Shinzo Abe’s efforts to end 15 years of deflation.
The MSCI Asia Pacific Index gained 6.8 percent this year, trading at 13.64 times estimated earnings as of yesterday, compared with 15.99 for the S&P 500 and 14.62 for the Stoxx Europe 600 Index.
With the legislation now heading to senate, the U.S. House passed the first bipartisan federal budget in four years, which would ease $63 billion in automatic spending cuts and avert another government shutdown. With President Obama already confirming his wish to sign the final measure, the House voted 332-94 for the $1.01 trillion compromise budget crafted by Senator Patty Murray and Representative Paul Ryan.