Overseas investors increase Asian bond Purchase

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

The 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.

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.

Meanwhile, Malaysian bonds attracted $217 million in inflows.

However, Thai and Indian bonds faced outflows of $518 million and $145 million respectively.

This month, U.S. President Donald Trump recently 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.

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

“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.” Khoon Goh said.