Global Demand Jumps for Emerging Asia Bonds on Rate-Cut Bets, FX

Global investors are extending their purchases of sovereign bonds in emerging Asia on rate-cut wagers and stronger local currencies.

Foreign funds bought $2.9 billion in Malaysia conventional government bonds in May, according to Bank Negara Malaysia’s latest data, the largest monthly inflow since October 2013. Their purchase of a net $652 million of listed bonds in South Korea on Thursday, marked the longest buying streak in more than two years, according to Financial Supervisory Service data.