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2026-07-17 17:34:13
[Oil Price Decline Coupled with Tech Boom: June Sees Largest Net Foreign Inflow into Asian Bond Markets in Seven Months] ⑴ Foreign investors made net purchases of approximately US$11.5 billion in bonds from Asian regions including South Korea, Indonesia, Malaysia, Thailand, and India in June, the largest monthly net purchase since November of last year, indicating a significant rebound in global capital's willingness to allocate assets to Asia. ⑵ Brent crude oil fell more than 20% from its four-year high last month, hitting a four-month low, significantly easing inflationary anxieties in major oil-importing countries. Although subsequent escalation of tensions in the Middle East pushed oil prices back up, the improved sentiment at that time laid the foundation for attracting buying interest in the bond market. ⑶ The global artificial intelligence wave continues to support the Asian manufacturing sector, with factory activity in many countries expanding due to increased demand for technology products. Improved growth expectations in export-oriented economies have further strengthened foreign investors' confidence in fixed-income assets within the region. (4) Indonesia's bond market led the way with net inflows of approximately US$5.5 billion, reaching a near two-year high, primarily driven by investors' pursuit of higher yields. India's bond market recorded net purchases exceeding US$3 billion due to adjustments in capital gains tax exemptions, marking its strongest monthly performance in nearly nine years. (5) South Korea's bond market recorded net inflows eight times in seven consecutive months, while Malaysia also saw stable buying. However, Thailand's bond market experienced a slight net outflow, indicating regional divergence. Overall, foreign investment preference in Asian bond markets remains on an upward trend.
