Bursa adjusting to potential Fed policy tightening and Covid-19 fallout

Cause for concern: A man walks past the Fed building in Washington. Investors are worried that the risk of monetary policy tightening in the US could spark a sell-off in emerging market assets. — Bloomberg

PETALING JAYA: While the emerging markets are still shuddering from the Covid-19 fallout, investors are gripped with the tapering of US Federal Reserves’ (Fed) stimulus and China’s economic reform.

Last week, many emerging markets were in the red on the expectation that the Fed will end its bond purchasing programme worth billions of dollars that has driven the global equity market for more than a year.