The Federal Reserve plans to slow the pace of its purchases of U. S. Treasuries as the recession eases, and signaled that the $300 billion program will end in October. The program was previously scheduled to end in September. The Fed has bought $252.8 billion of longerterm Treasuries since beginning its program.

Policy makers acknowledged signs that the worst recession since the
1930s may be ending, saying that data "suggests that economic activity is leveling out." Officials left the benchmark interest rate between zero and 0.25 percent after their two? day meeting. The FOMC said economic conditions mean the rate will stay "exceptionally low" for an "extended period." Policy makers said the economy is "likely to remain weak for a time" and projected a "gradual resumption of sustainable economic growth."

Confidence in the world economy surged to a 22? month high in August on signs the worst global recession since World War II is approaching an end, a Bloomberg survey of users on six continents showed. The Bloomberg Professional Global Confidence Index jumped to 58.12 this month from 39.13 in July. It is the first time the reading exceeded 50, which means optimists outnumber pessimists. A measure of U. S. participants' confidence in the world's largest economy rose to 47.3 from 29.5, the survey showed.

Asian stocks rose, driving the MSCI Asia Pacific Index to its biggest gain this month, after the U. S. Federal Reserve said the recession is easing and pledged to keep interest rates low. China's Shanghai Composite Index was the only regional benchmark gauge to fall, sinking 0.3 percent for the sixth loss in seven days. China's stocks fell for a second day, with the Shanghai Composite Index extending a socalled correction, on concern this year's rally has overvalued the nation's stocks relative to prospects for an economic recovery.

Goldman Sachs Group Inc. chief economist Jim O'Neill said Chinese stocks are "no longer so cheap" and countries such as Indonesia, Turkey and Poland may offer investors better opportunities. The Shanghai Composite Index fell 4.7 percent to a four? week low yesterday as the government said its $4 trillion yuan ($585 billion) stimulus package can't completely offset falling export demand.

The global prices of iron ore may not continue their rising trend because of China's ongoing efforts to reorganize its steel industry and reduce their excess production capacity, the Chinese industry minister said. In India yesterday government introduced new code for income tax which is expected to reduce corporate tax substantially.