Feb 16 (Reuters) – Asian bonds attracted foreign inflows for a fourth straight month in January as an improving growth outlook and robust demand for regional exports boosted investor appetite.
Foreign investors bought a net $3.78 billion worth of local bonds in South Korea, Thailand, Malaysia, India and Indonesia last month, compared with net purchases of about $8.07 billion in December, according to data from local regulators and bond market associations.
Asia’s factory activity expanded in January as solid global demand lifted export orders, with manufacturing growth recorded in South Korea, India, Indonesia and Malaysia.
South Korean bonds drew $2.45 billion in foreign inflows last month, following roughly $5.48 billion in December. Thai and Malaysian bonds attracted $1.5 billion and $235 million, respectively.
“Demand for the region’s debt remains strong, driven by inflows into South Korea,” said Khoon Goh, the head of Asia research at ANZ.
Foreign inflows into Indonesian bonds eased to approximately $400 million last month from about $2.1 billion a month earlier on concerns over policy uncertainty.
Earlier this month, Moody’s cut Indonesia’s credit rating outlook to negative from stable, citing reduced predictability in policymaking.
Indian bonds, meanwhile, saw net foreign outflows of $805 million, the largest monthly selling since April, after Bloomberg Index Services delayed the inclusion of Indian debt in its global index, surprising investors who had already priced in the move.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Mrigank Dhaniwala)
Comments