Dec 13, 2024

Asian Debt Markets Witness Foreign Outflows Due to U.S. Policy Concerns

In an unexpected turn for Asian debt markets, foreign investors withdrew substantial funds in November, marking the first instance of outflows in the past seven months. According to a report by Reuters, the anticipation of policy changes under the imminent Trump administration, coupled with a surging U.S. dollar, contributed to diminished investor interest.

Data gathered from various regulatory authorities and bond market associations indicated a net withdrawal of $1.92 billion from bond markets across Indonesia, Thailand, Malaysia, India, and South Korea. This represents the first monthly net sales since April, reflecting growing investor apprehensions regarding potential trade restrictions.

Khoon Goh, the head of Asia research at ANZ, commented, "Markets started to price in the implications of an incoming Trump administration for Asia, as well as the outlook for U.S. rates." This sentiment underlines the cautious approach adopted by investors in response to potential shifts in trade dynamics.

Indonesia witnessed foreign investors pulling out approximately $1.8 billion from its bond market, breaking a strong six-month buying trend. Similarly, the Thai and Malaysian bond markets experienced foreign outflows totaling about $1.08 billion and $257 million, respectively, marking a consecutive monthly decline.

Conversely, South Korean bonds attracted $1.07 billion in foreign inflows, continuing a five-month streak of net purchases influenced by their forthcoming inclusion in the FTSE Russell's World Government Bond Index (WGBI) starting November 2025. Meanwhile, India's debt market saw a modest net inflow of $145 million, indicating cautious investor engagement during this period of fiscal uncertainty.

The strengthening U.S. dollar has also played a significant role, achieving two-year highs post-election and leading to a depreciation of Asian currencies like the Malaysian ringgit, Thai baht, and South Korean won, each losing nearly 1.5% against the dollar. This currency fluctuation further contributed to the shift in investment preferences, as regional bonds faced reduced demand from foreign entities.

Source: IndexBox Market Intelligence Platform

  1. 1. INTRODUCTION

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    1. REPORT DESCRIPTION
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    4. GLOSSARY AND SPECIFIC TERMS
  2. 2. EXECUTIVE SUMMARY

    A Quick Overview of Market Performance

    1. KEY FINDINGS
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  3. 3. MARKET OVERVIEW

    Understanding the Current State of The Market and Its Prospects

    1. MARKET SIZE
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    1. TOP PRODUCTS TO DIVERSIFY YOUR BUSINESS
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  9. 9. GLOBAL EXPORTS

    The Largest Exporters on The Market and How They Succeed

    1. EXPORTS FROM 2012–2024
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    • United States
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  12. LIST OF TABLES

    1. Key Findings In 2024
    2. Market Volume, In Physical Terms, 2012–2024
    3. Market Value, 2012–2024
    4. Per Capita Consumption, By Country, 2018–2024
    5. Production, In Physical Terms, By Country, 2012–2024
    6. Imports, In Physical Terms, By Country, 2012–2024
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    8. Import Prices, By Country Of Destination, 2012–2024
    9. Exports, In Physical Terms, By Country, 2012–2024
    10. Exports, In Value Terms, By Country, 2012–2024
    11. Export Prices, By Country Of Origin, 2012–2024
  13. LIST OF FIGURES

    1. Market Volume, In Physical Terms, 2012–2024
    2. Market Value, 2012–2024
    3. Consumption, By Country, 2024
    4. Market Volume Forecast to 2030
    5. Market Value Forecast to 2030
    6. Products: Market Size And Growth, By Type
    7. Products: Average Per Capita Consumption, By Type
    8. Products: Exports And Growth, By Type
    9. Products: Export Prices And Growth, By Type
    10. Production Volume And Growth
    11. Exports And Growth
    12. Export Prices And Growth
    13. Market Size And Growth
    14. Per Capita Consumption
    15. Imports And Growth
    16. Import Prices
    17. Production, In Physical Terms, 2012–2024
    18. Production, In Value Terms, 2012–2024
    19. Production, By Country, 2024
    20. Production, In Physical Terms, By Country, 2012–2024
    21. Imports, In Physical Terms, 2012–2024
    22. Imports, In Value Terms, 2012–2024
    23. Imports, In Physical Terms, By Country, 2024
    24. Imports, In Physical Terms, By Country, 2012–2024
    25. Imports, In Value Terms, By Country, 2012–2024
    26. Import Prices, By Country, 2012–2024
    27. Exports, In Physical Terms, 2012–2024
    28. Exports, In Value Terms, 2012–2024
    29. Exports, In Physical Terms, By Country, 2024
    30. Exports, In Physical Terms, By Country, 2012–2024
    31. Exports, In Value Terms, By Country, 2012–2024
    32. Export Prices, 2012–2024

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