Foreign investors dumped Asian equities in the first six days of August after two months of buying, as the United States ramped up pressure on China with a $300 billion trade barrage last week.
Asian firms have cut back capital spending this year, and that means a recovery in regional earnings, jobs and overall demand could take a while.
Falling global interest rates and the promise of respite in long-running Sino-U.S trade tensions are luring investors seeking decent yields to emerging Asian bonds.
Foreign investors turned net buyers of Asian stocks in June as optimism ahead of a meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping, along with expectations of U.S. interest rate cuts bolstered sentiment.
As domestic economic concerns overtake last month's national election euphoria, India's stock market rally has lost steam and the index is lagging its Asian peers.
India's monsoon rains were below average for a fourth straight week due to scant seasonal rainfall over central and western parts of the country, raising concerns about production of summer-sown crops such as rice, soybeans and cotton.
(This june 20 story corrects company name in fifth paragraph to BNP Paribas Asset Management, from BNP Paribas)
While overseas investors sold Asian equities in May, they bought the region's bonds, which were made more attractive by falling yields and offered some safety amid worries over the Sino-U.S. trade war, Brexit and a global economic slowdown.
June 13 While overseas investors sold Asian
equities in May, they bought the region's bonds, which were made
more attractive by falling yields and offered some safety amid
worries over the Sino-U.S. trade war, Brexit and a global
Foreigners bought a net $4.61 billion of regional bonds after
selling $3.64 billion in April, data from regional banks and
bond market associations in Malaysia, Thailand, Indonesia, South
Korea and India showed.