BREAKING NEWS

Overseas investors increase Asian bond buying in September

Overseas investors increase Asian bond buying in September
A broker reacts while trading at his computer terminal at a stock brokerage firm in Mumbai, February 26, 2016. REUTERS/Shailesh Andrade/Files -
Copyright
Shailesh Andrade(Reuters)
Euronews logo
Text size Aa Aa

(Reuters) – Overseas investors were net buyers of Asian bonds for a fifth successive month in September as hopes grew that the United States and China would agree a trade deal soon after officials deemed their talks so far “productive”.

Asian bonds received a combined net inflow of $2.13 billion last month, about 19% higher than August, data from regional banks and bond market associations in Indonesia, Malaysia, Thailand, South Korea and India showed.

(Graphic: Foreign flows into Asian bonds https://fingfx.thomsonreuters.com/gfx/mkt/12/7375/7306/Foreign%20flows%20into%20Asian%20bonds.jpg)

Overseas investors purchased $1.4 billion worth of Indonesian bonds in September, the highest in the region, lured by higher yields.

South Korean bonds attracted $1.18 billion in foreign money buoyed by a stronger won, which gained 1.25% last month.

Malaysian bonds attracted $217 million in inflows.

On the other hand, Thai and Indian bonds faced outflows of $518 million and $145 million respectively.

This month, U.S. President Donald Trump on Friday outlined the first phase of a deal to end a trade war with China and suspended a threatened tariff hike on $250 billion in Chinese imports.

“An agreement, even if it is partial, is still a welcome development,” said Khoon Goh, head of Asia research at ANZ in Singapore.

“There is still a need for continued monetary and policy support until there is more confidence that economic growth is starting to recover and that the worst of the trade war is really behind us.”

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; editing by Jason Neely)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.
Euronews is no longer accessible on Internet Explorer. This browser is not updated by Microsoft and does not support the last technical evolutions. We encourage you to use another browser, such as Edge, Safari, Google Chrome or Mozilla Firefox.