(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.
Asian equity markets saw heavy outflows in May as a sudden escalation in the U.S.-China trade war threatened to put more pressure on export-reliant regional economies and companies which are highly reliant on Chinese sales.
Most Asian currencies were marginally easier on Thursday, as U.S. trade tensions with both China and Mexico kept investors wary of emerging markets.
(Adds text, updates prices)
By Patturaja Murugaboopathy
June 4 Most Asian currencies strengthened on
Tuesday as the dollar struggled in the face of falling Treasury
yields and growing expectations of a near-term interest rate cut
by the Federal Reserve.
The dollar slipped to a five-month low against the yen
earlier, setting the tone for much of the regional currencies.
The benchmark 10-year Treasury yield fell to its
lowest level since September 2017 overnight, coming within reach
of the 2% threshold after St. Louis Federal Reserve President
James Bullard said a rate cut "may be warranted soon" given the
rising risk to economic growth posed by global trade tensions as
well as weak U.S. inflation.
The strong "likelihood of Fed rate cuts has weighed on the
dollar, while boosting EM Asian currencies," said Qi Gao, Asia
FX Strategist at Scotiabank.
Trade worries have taken a bit of a backseat for regional
currencies this week as investors focused on falling U.S. yields
and searched for better returns outside.
"We expect USD-Asia to have an easing bias for now, with the
weaker dollar likely to prevail," said Emmanuel Ng, an FX
strategist with OCBC Bank in a note.
"However, with the fundamental picture of trade tensions and
economic slowdown still unchanged, we may not want to chase
USD-Asia lower on a multi-session horizon."
The Thai baht, which resumed trading after a market
holiday on Monday, rose 1% and led regional gainers on the day.
The Indian rupee tacked on 0.1 percent, helped by
strong inflows into the stock and bond markets thanks to
expectations of an interest rate cut by the Reserve Bank of
India (RBI) on Thursday.
India's exchange data showed foreigners bought $142.4
million worth of equities and $275.1 million of bonds on
"The RBI is expected to deliver a 25 bp rate cut on Thursday
afternoon, with the aim of stimulating India’s economic growth,"
said Scotiabank's Gao.
Gao said a rate cut will boost Indian equities and bonds,
and expectations of more market oriented reforms by Indian Prime
Minister Narendra Modi’s second term meant more upside for the
The Malaysian ringgit and Taiwan dollar also
edged higher on the day.
On the other hand, the South Korean won dropped
after data showed the economy grew a revised 1.7 percent during
the first quarter, slower than a 1.8 percent rise estimated
China's yuan edged lower on Tuesday, but the
Chinese central bank's firm fixing helped curb the fall.
The following table shows rates for Asian currencies against
the dollar at 0535 GMT.
CURRENCIES VS U.S. DOLLAR
Change on the day at
Currency Latest Previous Pct Move
Japan yen 107.880 108.06 +0.17
Sing dlr 1.368 1.3664 -0.15
Taiwan dlr 31.439 31.503 +0.20
Korean won 1181.90 1182.1 +0.02
Baht 31.360 31.67 +0.99
Peso 51.780 51.72 -0.12
Rupee 69.210 69.26 +0.07
Ringgit 4.175 4.18 +0.12
Yuan 6.907 6.9030 -0.06
are closed for
Change so far in
Currency Latest End 2018 Pct Move
Japan yen 107.880 109.56 +1.56
Sing dlr 1.368 1.3627 -0.42
Taiwan dlr 31.439 30.733 -2.25
Korean won 1181.90 1115.70 -5.60
Baht 31.360 32.55 +3.79
Peso 51.780 52.47 +1.33
Rupiah 14270.0 14375 +0.74
Rupee 69.210 69.77 +0.81
Ringgit 4.175 4.1300 -1.08
Yuan 6.907 6.8730 -0.49
(Reporting By Patturaja Murugaboopathy
Editing by Shri Navaratnam)
BENGALURU/HONG KONG China's developers, the country's most leveraged sector, have finally got their rising debt piles under control and some even boast record amounts of cash, powered by strong earnings growth and restrained expansion, a Reuters analysis showed.
Overseas investments into Asian bonds turned negative for the first time in three months in April, and analysts predicted the regional assets to come under more pressure due to an escalation in the Sino-U.S. trade dispute.
May 17 Overseas investments into Asian bonds
turned negative for the first time in three months in April, and
analysts predicted the regional assets to come under more
pressure due to an escalation in the Sino-U.S. trade dispute.
May 10 Foreigners were net buyers of Asian
equities for the fourth straight month in April, but analysts
doubt such inflows could be sustained amid an escalating tariff
war between the world's top two economies.