With recent positive U.S economic outlook, jobs and service industries exceeding previous forecast/projection, Asian stocks have rallied amidst easing worries over U.S economy and its impact. Some of the major global market players like Toyota Motor Corporation and Fisher and Paykel Appliances Holdings Ltd gained 3.8 percent and 2.8 percent respectively over optimistic economic overview.

USA’s and Japan’s quantitative easing programs as precursor, the Asian regional index, MSCI Asia Pacific Index, has gained 4 percent in the month of September amidst speculation of Chinese central bank’s monetary easing, i.e., stimulus to support the monetary flow in the economy via expansionary monetary mechanism. George Boubouras, head of an Australian based investment strategy-wealth management unit opines, “U.S jobs data was a little bit better than expectations and that’s positive.” This view clearly reflects the growing confidence of Asian market over improving U.S economic indicator, considered as a benchmark for global economy.

The entire global financial system is eagerly waiting for the execution of much anticipated ‘Quantitative Easing 3’ and its ramifications in the U.S economic indicators, eventually its mirage on Euro-zone and Asian market. As the market is expecting inflationary pressure off the stimulus, analysts presume the monetary easing to enhance the U.S economic perspective improving the employment market, investment conditions and create a multiplier-economic-effect to boost the U.S macro-economic indicators in the long run, in line with Quantitative Easing-3’s program, i.e., “stimulus-until the situation improves.” 

Although U.S is believed to eventually gain from monetary easing, economists from Asia and Europe fear that the impact of U.S stimulus to be ultimately transferred to emerging Asian nations in the form of inflationary pressure, especially in commodities and energy. Taking into account that the U.S economy is slowly shifting from crude-usage to gas and the ‘net-exporter’ status of agro products, the analysts anticipate global emerging nations to be affected from the forces of inflation that would be a brought-off of U.S quantitative easing program.