Hong Kong’s Hang Seng index soared following the US Federal Reserve’s unexpected decision to hold steady on its stimulus program. The Fed’s move calmed market anxieties surrounding a potential reduction in its bond-buying program, a policy known as tapering.

The Hang Seng’s positive reaction underscores the interconnectedness of global markets and their sensitivity to the monetary policies of major economies. Investors had been closely watching for signals from the Fed regarding the future of its stimulus measures, which have played a significant role in supporting economic growth and asset prices.

Analysts suggest that the Fed’s decision reflects concerns about the strength of the US economic recovery and the potential impact of tighter monetary policy on global growth. The continuation of the stimulus program is expected to provide ongoing support to financial markets and the broader economy.

However, some experts caution that the delay in tapering could also lead to future market volatility as investors continue to grapple with uncertainty about the timing and pace of the eventual reduction in stimulus.