Asian Bond Markets See Four-Month Low in Foreign Inflows
· Business · Economic Times, LiveMint, The Independent
Foreign investment in Asian local bonds dropped to a four-month low in July as investors grew cautious due to rising oil prices and economic uncertainty. The region faced pressure from the Middle East conflict, which disrupted shipping through the Strait of Hormuz and increased energy costs for importers. While India and South Korea recorded positive inflows, Malaysia and Thailand saw a retreat in foreign capital. Indonesia experienced a sharp decline in bond investments following the sudden resignation of its central bank governor. Overall, foreign buyers purchased a net $2.03 billion in bonds across these five markets, marking the smallest monthly inflow since March.
Why it matters
The slowdown highlights how energy-sensitive Asian economies are struggling to attract foreign capital, potentially impacting local currency stability and borrowing costs for regional governments.
Read the original report — Economic Times
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