Foreigners bought Asian bonds for Second month

Foreigners bought Asian bonds for the second successive month in August, brushing off concerns over Sino-US trade war and fears of contagion from Turkey and other volatile emerging markets. Data from central banks and bond market associations showed foreigners bought a net $4.57 billion of bonds from India, Indonesia, Thailand, South Korea and Malaysia in the last months, the highest since January.
South Korea bonds led the regional flows last month, attracting about $2.1 billion of foreign money, followed by Thailand which received $1.4 billion. Indonesia and Indian markets also received inflows of about $1 billion and $500 million, respectively.
On the other hand, Malaysian bonds saw outflows of $579 million in the last month. Though the region received two consecutive months of bond inflows, analysts expect money flows to remain volatile in coming months due to escalating Sino-US trade tensions and continued policy normalisation by the US Federal Reserve.